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US authorities stop Telegrams USD 1.7 billion digital token offering

Monday 14 October 2019 09:54 CET | News

US SEC has halted a USD 1.7 billion unregistered digital token offering by the messaging service Telegram and its TON Issuer subsidiary.

The SEC has taken the position that initial coin offerings are securities offerings and therefore subject to SEC offering rules, which require companies to file registration and disclosure documents.

The Securities and Exchange Commission had received a temporary restraining order against the two offshore entities, as they had failed to register to sell 2.9 billion digital tokens called ‘Grams’ to initial investors globally, including 1 billion to US buyers.

Telegram promised to give the coins to buyers when it launched its blockchain by October 31, when the purchasers and the company would be able to sell them into US markets, the SEC said.


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Keywords: US SEC, ICO, initial token offering, crypto, tokens, cryptocurrency, US, TON Issuer, Telegram
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