Telegram may delay token launch due to SEC lawsuit
"We disagree with the SEC's legal position," the letter says. Representatives of Telegram also explain that they are now thinking how to solve the situation, so they are considering delaying the launch of the TON token:
We are continuing to evaluate the best means by which to resolve the situation in the interests of relevant parties, including but not limited to assessing whether to seek to delay the launch date.
News that the SEC has filed an urgent lawsuit against two offshore companies associated with the telegram ICO appeared on Friday, October 11:
Our emergency action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold. We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.
SEC Executive branch co-Director Steven Peikin said in the same statement that Telegram failed to adequately meet legal requirements: "We have repeatedly stated that issuers cannot escape Federal securities laws by simply labeling their product with a cryptocurrency or digital sign," he explained.
New York Times tech reporter Nathaniel Popper noted on Twitter that the SEC's decision against Telegram could lead to a backlash from some of the major venture capital firms that invested in the project:
The SEC's intention to shut down the telegram crypto project raises questions from major venture capital firms, which invested $1.7 billion in the project and convinced themselves that it would pass regulatory scrutiny. These include Benchmark, Sequoia and Lightspeed.