Gram to claim refund if Telegram does not launch its network before April
Telegram is accused of violating Section 5 of the Securities Act of 1933 by not registering token sales as securities
After a long two-hour hearing, New York federal judge, P. Kevin Castel, extended the restraining order that prohibits Telegram from distributing its Gram tokens.
Under a clause established in Gram’s purchase agreements, the judge specifies Telegram’s lawyer, Alexander Drylewski, that ICO participants can claim a refund of their investment if Telegram does not launch the TON token before April 30.
The measure was taken after the judge reserved the trial on the request of the US Securities and Exchange Commission. (SEC) of a preliminary order regarding the sale of the 2019 Telegram Gram tokens.
SEC goes against Telegram
Although the Telegram ICO is the second largest ICO to date, having raised $ 1.7 billion since January 2018 in the form of two token sales, the SEC accused the messaging platform for violating Section 5 of the Securities Act of 1933 by not registering token sales as securities.
However, the SEC believes that the Gram token, which the company describes as a utility token for the next Telegram Open Network (TON), is a security.
K.Villarroel
Source: cointelegraph
