US SEC Halts Telegram’s $1.7 Billion Unregistered Digital Token

Nearly, $1.7 billion unregistered digital tokens (“Grams”) which are offered by the messaging service Telegram Group and its TON Issuer subsidiary have been found by US authorities on Friday.

The Securities and Exchange Commission SEC said that it had received a temporary restraining order against the two offshore entities, which the regulator said had failed to register to sell 2.9 billion digital tokens called “Grams” to initial investors globally, including 1 billion to US buyers. The move marks the latest effort by the agency to crack down on the fledgling cryptocurrency industry.

The SEC has taken the position that initial coin offerings are securities offerings and therefore subject to SEC offering rules, which require firms to file registration and disclosure documents.

“Our emergency action today is intended to prevent Telegram  from flooding the US markets with digital tokens that we allege were unlawfully sold,” blockchain by October 31, when the purchasers and the company would be able to sell them into US markets, the SEC said.

From the company side, there is no response on this even lawyer for the companies did not respond immediately to requests for comments.

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