Telegram Asks for More Time from SEC to Produce the Details

Overview-

• Telegram requires more time of five to seven weeks to produce the details of the financial records informed the Telegram’s lawyers.
• SEC also has presented evidence that indicated that the Telegram kept selling the token beyond $1.7 billion of ICO.

Telegram has requested for more time, I.e., five to seven weeks to produce the required details to the United States Securities and Exchange Commission (SEC).

The US SEC did ask for financial evidence on how Telegram spent its $1.7 billion Initial Coin Offerings(ICO), and Telegram refused to provide the required proof as reported on January 4. However, now the Telegram’s lawyers have asked for more time. Meanwhile, the SEC has also gathered more evidence against Telegram. As the form of evidence, SEC provided invoices where the Da Vinci Capital has sold more than $2 million worth of ICOs to a fund that is managed by the portfolio company called the ITI Funds. 

The filings of the SEC earlier said, “These documents undermine Telegram’s claimed affirmative defence that the Offering was exempt under Regulation D. 

First, Telegram either raised more than the $1.7 billion for which it claimed an exemption, or it did not raise $1.7 billion as of March 29, 2018, and the later funds may have been raised through underwriters.”  

The Co-Director of SEC, Steven Peikin, has repeatedly said that the issuers of the ICO’s cannot avoid the federal securities laws and regulations just by naming or labeling a product as a cryptocurrency or a digital token.

Stephanie Avakian, the Co-Director SEC’s Division of Enforcement said, “Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public,” In the light of recent events with the filings, the cryptocurrency plan of Telegram is now paused.