The court of the southern district of new York rejected the SEC’s request to provide information about banking operations and the use of funds raised by the TON project as part of the ICO.
Yesterday, January 6, after a conference call with the participants in the proceedings, judge Peter Kevin Castel (P. Kevin Castel) signed an order, according to which the application of the us securities and exchange Commission (SEC) for the provision of Bank documentation by Telegram is rejected.
Recall that Telegram raised about $1.7 billion through the sale of Gram tokens during an investment campaign that lasted from January to March 2018 and which, according to the Commission, is an unregistered sale of securities. In its motion, the SEC said that the defendants refused to provide information about how the funds collected were spent.
The regulator is confident that the requested documents are relevant to the case of a potential violation of Telegram’s securities laws, including data on the amount of funds already spent during the development of the TON blockchain platform. In addition, the documents could contain information about how much Commission Telegram paid to investors for reselling Gram to other market participants.
However, telegram’s lawyers believe that the SEC’s actions are just an attempt to find dirt on the company without any grounds.
“The SEC wants to obtain extensive and confidential data that has little or no relevance to the current case. The plaintiff in his letter distorts the legal aspects of the case and misses critical facts, ” the lawyers said.
However, at this point, it is still likely that the SEC will get access to at least some of the requested information. By January 9 of this year, Telegram must submit a Declaration specifying a schedule for checking Bank records to ensure that they comply with foreign data privacy laws.
The letter, which the company sent to the court, States that Telegram has already provided the regulator with information about expenses for the period from January 1, 2018 to January 31, 2019. According to the company, this is quite enough. In addition, on January 7-8, telegram founder and CEO Pavel Durov is due to give evidence in the ongoing trial in Dubai.