Description
The SEC sues Telegram Group and obtained a temporary restraining order to block two offshore entities from carrying out a $1.7B digital token offering that the SEC claims violates securities laws by failing to register their offers and sales of Grams.
Legal Significance
Overall, this case sets a precedent for how digital token offerings are treated under U.S. securities laws. However, the SEC's temporary restraining order contradicted its public statements that encouraged token developers to seek the agency's guidance, as Telegram had, on resolving securities issues in this emerging legal area.
Status
Settled
Case No.
1:19-cv-09439
Date Filed
October 11, 2019
Plaintiff
SEC
Defendant
Telegram Group Inc.Ton Issuer Inc.
Court
USDC Southern District of New York
Plaintiff Counsel
Alison Rose LevineJorge Gerardo TenreiroKevin Patrick McGrathMarc Peter BergerLadan Fazlollahi Stewart
Defendant Counsel
Skadden Arps Slate Meagher & Flom LLP
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