Telegram’s Bank Records Related to Gram ICO Are to be Released to U.S. SEC
Telegram’s bank records are going to be released to the United States Securities and Exchange Commission (SEC). This reversal in the case came as a shock to many. The current ICO misconduct court case has taken another dimension. This change came as in a filing yesterday the Court of the Southern District of New York (SDNY) gave Telegram time till February 26 to release them.
The filing will also allow the removal of information. This is for privacy reasons. It is also in line with the privacy of foreign entities in the United States. Defense attorneys to Telegram had also written to the court. They said in the letter that the full banking records will be provided to the court. Redactions will be made at the public filings.
Experts have indicated that the SEC will scrutinize the records in full detail. This also means that the next set of moves in court depends on what the SEC finds. If Telegram has nothing in those records, then the SEC will have to save face. If Telegram has something suspicious, then the case can be won by the SEC.
Access to Telegram’s Bank Records Was Denied
The denial of the bank records was made clear earlier this year. The court had denied the SEC’s request. Privacy concerns were the issue. The ruling against the SEC was “without prejudice”.
The SEC had already filed invoices on January 10 as a proof of violating securities laws. The SEC alleges that Telegram had been selling invoices outside its approved period. This is the basis for the case at the moment. The SEC also believes that Telegram had been cooking the books. The request for access to bank records is to prove this and other allegations.
This gives further insight into the SEC’s antagonist attitude towards cryptocurrencies. The SEC apparently has been hostile towards cryptocurrency projects. As a body, the SEC seems to detest crypto projects. Till now, the process of approval for cryptocurrency projects has been a problem. Binance, for example, faced this. Binance US works strictly for America. This has changed everything for the crypto space.
Telegram and the SEC started having their issues in October last year. The SEC had filed a cease and desist against Telegram on October 11. The SEC has referred to Telegram’s tokens as “unregistered securities”. Telegram, on the other hand, has referred to the Regulation D exemptions. Telegram’s argument is that its tokens fall under this category.
Under the Securities laws of the United States, Regulation D investment offerings are made to only certain types of investors. They must be “accredited.
This has made the SEC appear choosy as to how it selects the investments it deems worthy. But what’s about a winner in the SEC vs. Telegram battle? In a few months, we shall all know which side to back. For now, though, the court proceedings are made for deep introspection.