Telegram to Return $1.2 Billion to Investors and Pay $18.5 Million Penalty to Settle SEC Charges
It seems that Telegram digital tokens called "Grams," which Telegram intends to sell to fund applications, have been knocked out, as the Securities and Exchange Commission announced today that it has obtained court approval for settlements with Telegram Group Inc. Its wholly-owned subsidiary, TON Issuer Inc., thus the defendants agreed to return more than $ 1.2 billion to investors and pay a civil fine of $ 18.5 million.
This settlement also requires Telegram to notify future digital offerings.
Quote
On Oct. 11, 2019, the SEC filed a complaint against Telegram, alleging that the company had raised capital to finance its business by selling approximately 2.9 billion Grams to 171 initial purchasers worldwide. The SEC sought to preliminarily enjoin Telegram from delivering the Grams it sold, which the SEC alleged were securities that had been offered and sold in violation of the registration requirements of the federal securities laws. On March 24, 2020, the U.S. District Court for the Southern District of New York issued a preliminary injunction barring the delivery of Grams and finding that the SEC had shown a substantial likelihood of proving that Telegram's sales were part of a larger scheme to unlawfully distribute the Grams to the secondary public market.
Read more and source ---> https://www.sec.gov/news/press-release/2020-146