Telegram Tries to ‘Clarify’ Gram Crypto Project Amid Ongoing SEC Fight

by Admin
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Telegram Tries to ‘Clarify’ Gram Crypto Project Amid Ongoing SEC Fight

The post, which appears to be the primary official notice addressing the TON blockchain project, is signed by “The Telegram Team” and describes the connection between Telegram and TON.

“In light of recent events, we wanted to require the time to publicly clarify certain aspects of the TON Blockchain and Grams as we still steel oneself against a successful launch of the project,” the post reads, apparently pertaining to the lawsuit the U.S. Securities and Exchange Commission (the SEC) brought against Telegram in October. 

The statement purports to detail Telegram's dedication to legal compliance, whilst the corporate fights the SEC on claims that it intended to flood U.S. capital markets with unregistered securities.

“Grams aren't investment products and there should be NO expectation of future profit or gain from the acquisition , sale or holding of Grams,” the notice reads, adding that the tokens don’t represent equity in Telegram, dividend rights or governance rights in Telegram “and its affiliates,” although it’s not specified what entities are meant by this term. 

“Grams won't assist you get rich,” the post says. 

More significantly, Telegram changed its plans to form grams readily available to all or any Telegram users. consistent with the new notice, the wallet for the tokens will only be available as a stand-alone app, which has been recently released in beta. 

In October, Telegram published its Terms of Service for the wallet, saying Gram Wallet would be integrated into the messenger additionally to the standalone product at the time.

“Telegram may integrate the TON Wallet application with the Telegram Messenger service within the future to the extent permitted under applicable laws and governmental authorities,” the posts says, seemingly indicating that for now, users will only be ready to use the standalone product.

Public comments

Telegram's post also addresses its past lack of discuss the TON project.

Telegram “has been careful to not speak publicly” about the project, which raised $1.7 billion during a closed and secretive token pre-sale in 2018, “to make sure that the TON Blockchain and Grams can operate during a way that's compliant with all relevant laws and regulations,” the post explains. 

The team confirmed Telegram had been performing on the TON blockchain and gram cryptocurrency since 2017, consistent with the post.

"We hope that as a results of this project Grams will become a real complement to traditional currencies, improving the speed, efficiency and security of everyday commercial transactions globally,” the post reads.

Perhaps to form up for this past reticence, Telegram's blog post insists TON are going to be a decentralized network, which the corporate might not "develop any applications or features for ... or otherwise contribute [to] in any way" once the network is live.

Telegram’s employees also won’t use their own grams to participate in transaction validation and on-chain voting, the post says.

“This voluntary decision was made so as to avoid any perception that Telegram or its employees can or will exercise control over the TON Blockchain following its launch," it explained.

Telegram is additionally "under no obligation" to determine plenty Foundation, the organization designed to “promote and support the TON Blockchain,” consistent with the first marketing materials, the post said.

According to Telegram's communications with the SEC in 2018, the corporate also previously considered changing the functions of the TON Reserve, another entity Telegram would launch to take care of the availability of gram tokens.

The post also warned against buying future tokens on the unofficial secondary market that flourished after the pre-sale was completed. “Grams don't exist yet, nobody can purchase or sell them before we announce the launch of TON Blockchain. aren't getting scammed,” the notice says.

Perhaps most notably, Monday's post seems to be attempting to retroactively negate any previous marketing materials about the project, saying, "Please note that the below is meant to supersede and replace all prior materials or communications regarding the TON Blockchain and Grams."

Waiting for Durov’s testimony

Telegram has been fighting the SEC’s plan to halt the launch of TON altogether. In October, the corporate secured approval from TON investors to postpone the launch until the top of April, after a previously scheduled Oct. 31, 2019, to offer Telegram time to resolve its legal fight.

The SEC demanded Telegram’s employees, including CEO Pavel Durov, testify within the depositions for the case. Durov’s deposition is scheduled to require place on Jan. 7 and eight in Dubai. Telegram vice chairman Ilia Perekopsky, known to possess a lively role within the $1.7 billion fundraiser, should are deposed on Dec. 16, consistent with the writ , and therefore the investor relations officer Shyam Parekh on Dec. 10.

A short excerpt from Parekh’s deposition has been released by the SEC, during which he explained that roughly 70 percent of TON's presale backers and 90 percent of its Stage A fundraisers had approved pushing the launch date.

Few backers opposed the delay, with the balance of investors simply not responding, he said.

On Friday, the SEC requested Telegram's bank information to ascertain how it spent the $1.7 billion it raised during the token presale. Telegram's attorney, Alexander Drylewski, in another filing responded that the corporate has already provided "a detailed breakdown of all expenditures it made between January 1, 2018 and January 31, 2019."

SEC attorney Jorge Tenreiro, however, insisted Telegram didn't provide all the knowledge the SEC sought, like what proportion Telegram paid its underwriters.

"The SEC also has evidence that certain entities tendered invoices to Telegram for commissions ranging between 10 percent to fifteen percent to Telegram supported the sale of certain Purchase Agreements, purportedly on the idea of contracts between those entities and Telegram dated in June 2018," the SEC filing says, emphasizing the info is vital for the character of the litigation:

"These documents undermine Telegram’s claimed affirmative defense that the Offering was exempt under Regulation D. First, Telegram either raised quite the $1.7 billion that it claimed an exemption, or it didn't raise $1.7 billion as of March 29, 2018 and therefore the later funds may are raised through underwriters."

According to a court filing by Drylewski, Telegram again opposed the SEC's request to supply the knowledge on "every single transfer to and from" Telegram as "irrelevant, overly broad and unnecessary."

On Monday Judge P. Kevin Castel of the U.S. District Court in ny declined the SEC's motion for Telegram to disclose bank records before or during Durov's deposition, consistent with a report from center Press. Instead, the judge ordered Telegram to file a proposed schedule to disclose the knowledge , or a minimum of review for privacy concerns, the requested bank records by Jan. 9, after the deposition is scheduled to require place.