CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$46,483.00
  • ethereum
    ETH$1,442.79
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Telegram Refuses To Share Financial Records With SEC

    Telegram Refuses To Share Financial Records With SEC

    Author: Jordan Lyanchev

    Last Updated Jan 3, 2020 @ 08:29

    The case between the U.S. Securities and Exchange Commission (SEC) and the encrypted messaging platform Telegram takes another turn. The latter has reportedly refused to hand over financial details regarding its ICO from two years ago, which was recently requested by the market regulator.

    Telegram Does Not Want To Share

    After raising over a billion dollars in two token sales in 2018 for the development of its Telegram Open Network (TON) blockchain, the company attracted a lot of attention to itself. The SEC reacted quickly and temporarily halted the token sale, outlining that it failed to comply with existing regulations.

    The situation escalated further when the market regulators requested a court order to allow them full access to Telegram’s financial records. According to the SEC, Telegram’s future coin Gram comes under the securities category and the company has failed to register it as such.

    However, it appears that Telegram feels hesitant about the issue and doesn’t want to share its data:

    “Defendants are now refusing to disclose the bank records concerning how they have spent the $1.7 billion they raised from investors in the past two years and to answer questions about the disposition of investor funds.”

    SEC officials have purportedly stated that these records are essential to the issue in dispute. They should be used to prove how Telegram has operated with the raised funds when it comes down to developing the TON blockchain.

    Scammy Nature?

    Gram was supposed to be launched late last year but it was delayed which attracted the attention of the cryptocurrency community, as well. People started speculating if this is a premeditated attempt from the company to create some sort of a scam.

    One of the most popular traders and analysts, Tone Vays, was rather vocal about it when he raised his concerns about the potential usage of Gram:

    “Are they creating money for the world? Or are they simply finding a way to monetize their company? If you’re monetizing your company, you’re supposed to do it through the equity space. You are supposed to give shares of your company. You’re not supposed to invent money.”

    Before concluding that Gram could turn out to be a scam project, it’s worth noting that it’s not the first-ever delayed project. Moreover, it comes from a large and established company, which should provide for a certain level of trust. With that being said, Telegram is not doing itself any favors by declining access to its financial records, thus delaying the case resolution, and ultimately its coin release.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • ethereum_2
      ETH 2.0 Could be 6-8 Weeks Away as Developers Share Latest News
    • israeli_cover_1
      20 Crypto Israeli Leaders Hacked Via Telegram: Mossad Investigating
    • telegram_cover
      Telegram To Pay $625K in Fees After Dropping a GRAM Trademark Lawsuit
    Read more on: Regulations SEC Telegram

    About The Author

    Jordan Lyanchev View more posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$46,483.00
  • ethereum
    ETH$1,442.79
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    pionexb
    2local
    Bitcoin Editorials
    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!