The dispute between Telegram and the U.S. Securities and Change Fee (SEC) is coming to an in depth as the ultimate judgment has been filed. Telegram has been ordered to pay again $1.2 billion. The corporate should additionally pay the SEC a superb of $18.5 million.
Remaining Judgment in Case of SEC vs. Telegram
The ultimate judgment within the case of the U.S. SEC vs. Telegram Group Inc. and TON Issuer Inc. was filed with the District Court docket of Southern District of New York on Thursday. District Decide P. Kevin Castel has ordered Telegram Group Inc. to pay a civil penalty of $18,500,000 to the SEC inside 30 days.
Telegram should additionally return 70% of the $1.7 billion raised, particularly the unspent portion of the funds obtained from traders much less any cash already refunded or that traders have provided to loan the corporate. The court docket doc states:
Defendants are collectively and severally chargeable for disgorgement of $1,224,000,000.
“Today’s proposed settlement reconfirms our commitment to repay the remaining funds to purchasers under the purchase agreements,” Telegram founder Pavel Durov was quoted by Siliconangle as saying. “We’ve already repaid more than $1.2 billion to the purchasers either directly or in the form of loans.”
Moreover, the court docket order particulars that for the following three years, the defendants and all individuals concerned who obtained the ultimate judgment are required to present 45 days’ discover to the SEC earlier than taking part “in an issuance of ‘cryptocurrencies,’ ‘digital coins,’ ‘digital tokens,’ or any similar digital asset issued or transferred using distributed ledger technology.”
The SEC vs. Telegram case started when the fee obtained a brief restraining order on Telegram’s token sale in October final yr for allegedly providing unregistered securities. The TON crypto mission raised about $1.7 billion from traders in 2018. Telegram fought the SEC in court docket till a U.S. decide sided with the fee in March and dominated that the gram cryptocurrency couldn’t be distributed each within the U.S. and globally. Telegram subsequently dropped the TON mission and its enchantment in opposition to the ruling. The corporate provided to pay traders again in two methods however U.S. traders solely have the choice of taking 72% refunds.
This proposed settlement is awaiting court docket approval. It’s supported by each Telegram and the SEC. The court docket doc will be discovered right here.
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