Telegram has requested a court docket to make clear what precisely it should do to adjust to the U.S. Securities and Trade Fee (SEC) order banning the issuance of its gram tokens.
Final week, the New York Southern District Courtroom Decide Kevin Castel issued a preliminary injunction within the case, prohibiting the issuance and distribution of the tokens for the messaging app firm’s blockchain TON.
The decide determined that the SEC “has proven a considerable probability of success in proving” that Telegram’s personal placement of tokens was an unregistered securities sale.
Nonetheless, Telegram continues to be ready for a extra detailed order prescribing what precisely it could possibly and can’t do because it prepares to launch its blockchain and buyers await their paid-for gram tokens.
In a letter to Decide Castel on Friday, the corporate’s lawyer Alexander Drylewsky requested the court docket to make clear if the ban applies to the non-U.S. buyers in TON. In line with the court docket paperwork, a few quarter ($424.5 million) of the $1.7 billion Telegram raised in two rounds in February and March 2018 got here from the U.S. buyers. The remainder, Telegram argues, should not topic to U.S. securities legal guidelines.
The corporate stated it is prepared to take steps to fence off American buyers whereas nonetheless fulfilling its obligations for others. “Ought to the Courtroom require, Defendants will implement safeguards to guard towards non-U.S. Non-public Placement purchasers reselling Grams to U.S. purchasers sooner or later,” the letter reads.
Such measures, it provides, may embrace a situation that non-U.S. buyers could can solely obtain their grams if they don’t seem to be going to resell them within the U.S., and that Telegram may “[configure] the TON digital pockets to preclude U.S.-based addresses.”
U.S. securities regulation solely covers transactions in securities listed on home exchanges, and home transactions in different securities, the corporate argues, so Telegram nonetheless has “irrevocable legal responsibility” for its buyers in different nations.
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