SEC stops TON & GRAM protecting US investors and classifies GRAM as security
SEC stops TON & GRAM protecting US investors and classifies GRAM as security
Stephanie Avakian, co-director of the SEC Division of Enforcement said:
Today’s emergency response is designed to prevent Telegram from flooding the US markets with digital tokens that we claim have been unlawfully sold.
We claim that the defendants have failed to provide investors with information about the business of Gram and Telegram, the financial condition, the risk factors and the management required by the Securities Law. “
Steven Peikin, co-director of the SEC Division of Enforcement, confirmed this and added the following:
We have repeatedly stated that issuers can not avoid securities laws by simply labeling their product as a cryptocurrency or digital token
Telegram strives to take advantage of a public offer without fulfilling the long-standing disclosure requirements to protect investors.
It was not until the beginning of this week that Telegram officially announced the official connection to TON & GRAM and included the terms of use on its official website. It will be exciting to see how the much-anticipated project will continue. Because even if a part is stopped, the rest of the world is not under the hammer of the SEC.
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