Documents published by the SEC confirm that two or more organizations billed Telegram for commissions from the company’s token sale in the summer of 2018, months after the ICO was completed.
The US securities and exchange Commission (SEC), which released documents as part of an ongoing legal case against Telegram, said that evidence of token sales after the ICO debunks the company’s arguments that the token offering was entitled to an exemption from registration requirements.
Da Vinci Capital investment Fund and an organization called Gem Limited requested commissions of $209,783 and $1.1 million, respectively, for “subsequent sales” of the Telegram project’s token purchase agreements. According to reports submitted to the SEC, on June 20, 2018, Da Vinci Capital sold
Gram tokens worth more than $2 million to a Fund managed by its portfolio company, ITI Funds. Gem Limited sold
Gram for $8.6 million to Goliat Solutions and $4.5 million to Space Investments Limited on July 2, 2018.
Both sales occurred after two rounds of ICO, which Telegram claimed was eligible for an exemption from registration under “Regulation D”, were completed in February
The latest documents add to the list of evidence that the SEC submitted to the District court for the southern district of new York to confirm the illegal sale of Gram tokens as unregistered securities.
“These documents debunk Telegram’s claims that the offer was entitled to an exemption from registration requirements under “Regulation D”. In addition, Telegram either raised more than $1.7 billion, or the firm failed to receive the full amount by March 29, 2018 and the funds could later have been raised through underwriters,” the SEC filing said, referring to the accounts.
The SEC argues that in accordance with” Regulation D”, the Issuer must take reasonable measures to ensure that buyers do not act as legitimate underwriters (that is, do not sell the Issuer’s securities for Commission), said Seward & Kissel lawyer Philip Moustakis.
According to the SEC, the companies that billed Telegram did just that. At the same time, Telegram claims that the Commission was a payment for distributing information about Gram to other investors outside the United States, Moustakis said.
The us regulator in October 2019 accused Telegram of unregistered token sales a year and a half after the ICO.
Telegram agreed to postpone the launch of the project, which was previously planned for the end of October, until April 2020. TON investors approved the postponement of the launch, refusing to refund funds until disputes with the SEC are resolved. We also recall that at the beginning of the month, the Telegram company refused
provide the SEC with information about banking transactions related to ICO expenses.