ICO News

Telegram to pay $27m penalty, return investor money – iTnews


Telegram Group has agreed to return US$1.2 billion (A$1.74 billion) to investors and pay an US$18.5 million (A$26.9 million) civil penalty to resolve charges over an unregistered digital token coin offering, the US Securities and Exchange Commission (SEC) said.

The regulator in October halted a US$1.7 billion (A$2.47 billion) digital token offering by the firm, which is best known for its messaging app, saying Telegram had raised capital to finance its business by selling 2.9 billion “Grams” to global investors.

The SEC said in a statement it had obtained court approval of the settlements with Telegram and its TON Issuer subsidiary.

Telegram neither admitted to or denied the SEC’s allegations.

The agency has been seeking to crack down on the fledgling cryptocurrency industry. 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.

“New and innovative businesses are welcome to participate in our capital markets, but they cannot do so in violation of the registration requirements of the federal securities laws,” said Kristina Littman, chief of the SEC Enforcement Division’s cyber unit.

Because Telegram missed a deadline to launch its TON platform due to a court injunction, the firm had to return funds to purchasers, Telegram said in a statement, saying it had already returned US$1.2 billion to purchasers either directly or in the form of loans.

“We hope the regulatory environment for blockchain technology in the US becomes more favourable for others in the future,” it said.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.