Telegram (TON) project has been halted by SEC - page 2.

BitHodler

legendary

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Quote from: o48o on October 12, 2019, 02:27:36 PM

I find it strange that projects on this level don't want to consult SEC before the sale, one would think that it would be better then getting halted/sued later.

Because they know that they don't stand a single chance for the simple reason that they are launching a security. Or they thought to have found a grey area to exploit and for that reason not need the approval of the SEC.

The SEC for a long time wasn't really that active, but that has definitely changed---the freedom security issuers had is no longer there and a lot projects will be held responsible for that. No way the SEC will let you get away with it.

I'm sure there is bias towards the bigger projects, because on paper it doesn't make economical sense to chase after few million dollar projects when there are a lot projects in the +$50 million category.

desticy

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Quote from: o48o on October 12, 2019, 02:27:36 PM

I find it strange that projects on this level don't want to consult SEC before the sale, one would think that it would be better then getting halted/sued later.

Perhaps at the time of fundraising this was not necessary. Even in the USA there is no full-fledged legal framework regarding relations with cryptocurrency.
GRAM tokens could well not fall under the concept of securities at the time of the sale.It is a pity that the launch of the project will have to be postponed, but I think it will take place nevertheless.

qiman

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The SEC likes to halt progress in anything too big on the Internet. They simply don't want U.S citizens or anyone else to participate in more unregulated types of online activities, but if they stop businesses in their tracks, they just confiscate the funds and the investors never see a penny back of their investment. All the SEC LAWYERS keep every penny for them selves. I think the SEC are the biggest crooks walking on the planet. I am sorry to say this, but I do not respect what they do at all as they act purely in self interest.

o48o

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I find it strange that projects on this level don't want to consult SEC before the sale, one would think that it would be better then getting halted/sued later.

DaMut

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Quote from: target on October 12, 2019, 08:13:39 AM

Quote from: mintme.com on October 12, 2019, 07:57:12 AM

on one point: I hate it when big corporations infiltrate our crypto market, they never have good intentions even if some could make profit off their backs
on another point: This is outrageous from the Trump controlled SEC, if it was an American company collecting this money their reaction would be totally different, they'd try to control it but not shut it down like that.

Isn't the GRAM developer from US? Was assuming they are. I have no idea so what jurisdiction do the US SEC have to projects outside US, I don't understand that part. Do they have the right to shut down projects from Estonia or so?

As far as I know GRAM is based on the US.
SEC does not have any jurisdiction outside the US because every country has a different jurisdiction and SEC does not have a capability to shut down a project outside the US unless the project itself crosses the borderline.

there are 2 reasons why SEC stop this project;
1. The project is unregulated
2. They are involving US citizen in the sale

spadormie

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We should hold our investment in this project. SEC should be the one we need to follow and if SEC halted this, we can't do anything in here but to follow. Or else, we will also get trapped. Follow SEC guidelines since it is also a guideline for you to protect yourselves.

target

legendary

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Quote from: DaMut on October 12, 2019, 04:04:51 AM

What else? Of course, stop investing in that project anymore. Remembered what happens with Kik a few months ago?
https://www.theverge.com/2019/9/24/20881515/kik-messaging-app-shut-down-kin-cryptocurrency-fight-sec-ico

there is no reason for us to continue our investment after we got this notification from SEC, it is completely dead for me.
they do not have another different choice other than closing their project.

Terrible thing to happen and so I guess GRAM will be off because they already did in once for being very assertive.

Quote from: mintme.com on October 12, 2019, 07:57:12 AM

on one point: I hate it when big corporations infiltrate our crypto market, they never have good intentions even if some could make profit off their backs
on another point: This is outrageous from the Trump controlled SEC, if it was an American company collecting this money their reaction would be totally different, they'd try to control it but not shut it down like that.

Isn't the GRAM developer from US? Was assuming they are. I have no idea so what jurisdiction do the US SEC have to projects outside US, I don't understand that part. Do they have the right to shut down projects from Estonia or so?

mintme.com

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on one point: I hate it when big corporations infiltrate our crypto market, they never have good intentions even if some could make profit off their backs
on another point: This is outrageous from the Trump controlled SEC, if it was an American company collecting this money their reaction would be totally different, they'd try to control it but not shut it down like that.

don.key

jr. member

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Quote from: BlackFor3st on October 12, 2019, 07:46:18 AM

I am wondering, why for almost 2 years the SEC didn't release it earlier and they only release it yesterday "October 11, 2019".
(The complaint alleges that defendants failed to register their offers and sales of Grams, which are securities, in violation of the registration provisions of the Securities Act of 1933.). If they can solve this issue , I am pretty sure they can continue the project smoothly.

Even if they do not settle this they can either go ahead and release GRM or return money to investors (apparently entire 1.7bil is stored in TON Foundation) and then make a proper ICO. I would bet that proper ICO would raise a high 8 digit number.

coiningz

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SEC is really agressive in this year. Telegram have less than 20 days to fix it

don.key

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Quote from: tomahawk9 on October 12, 2019, 06:42:59 AM

Good? The words "SEC" and "restraining order" are now linked to Telegram's token, how is that good publicity? Do you think the retail investosr reading this news on The Verge, Bloomberg, or Forbes, are now saying "Hmm, this token actually looks like it could be a good investment"?

The old saying "there is no such thing as bad publicity" doesn't apply in this case, this is actually VERY bad news for Telegram's token.

First of all, we need to separate Telegram (company and messenger) from TON. Durov's knew very well that it will be under attack and they have "washed their hands". TON Foundation and Network is independent entity from Telegram and it is all about PoS stakeholders and Validators now. No one, not even Durov will be in control of TON once it is released.

As of SEC: I am sure settlement will be reached and this would be also in newspapers. More news - more people know about them. Real long term investors would not invest into GRM in next 18 month anyway because of expected high volatility and pressure from ICO investors selling their stakes. TON has enough money to proceed with development and proof it's functionality.

TON is so much more than blockchain or "simple" smart contract platform. If team can deliver (which I strongly believe they can) then TON is here to stay. And if those news will help to push GRM down quite a bit then I will be quite happy because I am seriously considering to purchase validator stake and operate few nodes myself.

BlackFor3st

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Quote from: Lionel on October 12, 2019, 03:59:17 AM

https://www.sec.gov/news/press-release/2019-212

Should we assume the project is dead?

I was about to reserve $500 worth of GRAM tokens on Crypterium or some exchange, but at this point i think it's not advisable.
What do you suggest ?

This is bad, I guess they need to settle it immediately or else this project will be considered as dead. It was stated that they it was not registered and they were able to raise 1.7$ billion dollar for less than 2 years as they started the fund raising last January 2018.

I am wondering, why for almost 2 years the SEC didn't release it earlier and they only release it yesterday "October 11, 2019".
(The complaint alleges that defendants failed to register their offers and sales of Grams, which are securities, in violation of the registration provisions of the Securities Act of 1933.). If they can solve this issue , I am pretty sure they can continue the project smoothly.

masterrex

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Quote from: Lionel on October 12, 2019, 03:59:17 AM

https://www.sec.gov/news/press-release/2019-212

Should we assume the project is dead?

I was about to reserve $500 worth of GRAM tokens on Crypterium or some exchange, but at this point i think it's not advisable.
What do you suggest ?

I think GRAM tokens was overprice its too expensive for small investors to afford I want to buy and hold it, but because it was too expensive thats why im got turn off when i visit the one of its offerings, particulary in Liquid Exchange GRAM token price was $4 dollars.

Willitivity

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I have always been skeptical about this project, with SEC halting it, I think my fears has been confirmed. If this was really backed by telegram, I hope to see how the resolve the issue and get back on track. But if it's not, then this is the end of the project. Holding off from investing till I'm certain of it.

tomahawk9

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Quote from: Lionel on October 12, 2019, 03:59:17 AM

What do you suggest ?

You're better off not reserving any GRAM for the time being. You were about to reserve a token that was bound to get dumped (at least in my opinion) by the early buyers once the retail investors started pouring in.

Quote from: don.key on October 12, 2019, 05:16:34 AM

In some way this news generates publicity, which is also good.

Good? The words "SEC" and "restraining order" are now linked to Telegram's token, how is that good publicity? Do you think the retail investosr reading this news on The Verge, Bloomberg, or Forbes, are now saying "Hmm, this token actually looks like it could be a good investment"?

The old saying "there is no such thing as bad publicity" doesn't apply in this case, this is actually VERY bad news for Telegram's token.

ecnalubma

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Well if ICO's offer or operate within the US soil they should make sure that they are fully compliant to avoid pressure like this. Unless the SEC agree and let them pay for settlement just like other coin who violated their guidelines. It should be a lesson for every start-ups to comply with government regulations or observe self regulation to avoid problems in the future.

don.key

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Quote from: Kemarit on October 12, 2019, 05:08:39 AM

Definitely, its the US long arm of the law, so It will be better if you would step aside that money to something else, I won't suggest which coin though, but I'm sure you know to DYOR here. Here is one example of a project being sued by US SEC and how it turns out for them.

(https://www.coindesk.com/kik-messaging-app-to-shut-down-following-sec-lawsuit-against-ico).

And there are reports that the token itself went literally to $0.00.

And then there is case of EOS that got away lightly.

About SEC action I have mixed feelings, firstly I do believe that laws are there for a reason and grudge SEC has against TON is quite easy to understand:

Quote

“We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.”

So, in a nutshell missing information pieces. If(!) TON indeed did not come up with all those infos, then this is a shame and I am sorry to say but SEC is right to act. On another hand timing could not have been worser, they had years to react and now they pop up several weeks before public release.

But projects of such magnitude do not die from a simple SEC injunction, some lawyers will get active and things will be resolved, I am sure. Apparently entire 1.7 Billion went into TON Foundation war chest and investors could also come up with additional funds. So even a 100mil fine would be manageable. In some way this news generates publicity, which is also good.

By the way, do not buy GRM anywhere until official TON launch. You will buy thin air or overpriced token. Wait.

Kemarit

legendary

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Definitely, its the US long arm of the law, so It will be better if you would step aside that money to something else, I won't suggest which coin though, but I'm sure you know to DYOR here. Here is one example of a project being sued by US SEC and how it turns out for them.

(https://www.coindesk.com/kik-messaging-app-to-shut-down-following-sec-lawsuit-against-ico).

And there are reports that the token itself went literally to $0.00.

You can also read one of my post here regarding another company being sued by US SEC,
(https://bitcointalksearch.org/topic/us-sec-settles-with-bitqyck-after-alleged-fraud-and-13-million-unregistered-5180580).

Kvalentine

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Quote from: Lionel on October 12, 2019, 03:59:17 AM

https://www.sec.gov/news/press-release/2019-212

Should we assume the project is dead?

I was about to reserve $500 worth of GRAM tokens on Crypterium or some exchange, but at this point i think it's not advisable.
What do you suggest ?

Lets all chill and wait to see what will happen, telegram should be able to fix this shit on their own or just give up, its too early to guess now because i heard SEC loves some money, i was mad at myself for missing the TON sale but now somehow i feel at ease from within

batang_bitcoin

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These passed days I always see those people that are posting "How to Buy Gram tokens" and now, this pop. I need to know more about the US Sec law but this means that TON can still file for compliance since this is a temporary order.

Quote from: ?? on ??

This is a bad news for the Blockchain community!

Nope, only for TON.

Quote from: Lionel on October 12, 2019, 03:59:17 AM

I was about to reserve $500 worth of GRAM tokens on Crypterium or some exchange, but at this point i think it's not advisable.
What do you suggest ?

Keep your $500 or buy bitcoin.

Topic: Telegram (TON) project has been halted by SEC - page 2. (Read 415 times)