Telegram refers to a recent decision of a us court, according to which the SEC’s arguments about the company’s violation of us Federal securities laws are erroneous.
The letter, which was sent by telegram’s lawyers on Friday to judge P. Kevin Castel of the U.S. District court for the southern district of new York, provides the decision
of the California court of appeals on March 3. The trial itself is not related to cryptocurrencies, since there is a legal conflict between the parties to the agreement on the repair and leasing of premises in a building in Los Angeles. However, Telegram believes that the opinion of the California court reflects the company’s position in the case
against the SEC.
The lawyers managed to find similar points in the wording of the agreement for the purchase of Gram tokens and the partnership agreement, which was considered by the California court.
“As in the case of plaintiff Siry Investment, the Gram token sale campaign did not involve the distribution of securities to the General public and thus did not violate American securities laws. Telegram sought not to make transactions that could fit the securities laws, ” the company writes.
Telegram’s lawyers are confident that although agreements for the purchase of Gram tokens by accredited investors fall under the definition of securities, as required by the SEC, the tokens themselves are not.
“The purchase agreements had clear provisions stating that their execution could not violate the law, and each buyer guaranteed that they would distribute Gram tokens only in accordance with securities laws and the terms of the purchase agreement,” the lawyers claim, drawing another parallel with the Siry Investment case.
The SEC responded by sending a letter on March 9, in which it responded to Telegram’s arguments. The regulator indicated that the company “continues to try to use labels instead of substance.”