Telegram Stands Firm: Grams Are Not Securities, Says Company to SEC

Telegram’s Push Against SEC’s Preliminary Injunction

In the world of cryptocurrencies, drama unfolds like a soap opera, and this time it’s Telegram taking the center stage. On October 16, Telegram shot back a resounding ‘no thanks’ to the SEC in a case that’s turning into a legal tug-of-war over its digital currency, Gram. They’ve petitioned the United States District Court for the Southern District of New York to reject the SEC’s request for a preliminary injunction that would trap their Grams under regulatory red tape.

All Systems Go—Sort of

Telegram’s legal team wants the court to maintain the status quo regarding the distribution and sale of their Grams, successfully swinging the pendulum of legalese back into their court. With a deadline looming on October 18 to file a counterclaim, the pressure is palpable. In a twist reminiscent of a high-stakes spy movie, Telegram’s filing occurred just two days before the curtain was set to rise on this legal drama.

A Case of the SEC’s Own Making

The plot thickened as Telegram’s attorneys alleged that the SEC’s emergency filing on October 11 was more about theatrics than transparency. They claim that the SEC has been playing a game of hide-and-seek for the past 18 months, engaging with Telegram without providing concrete feedback. It’s like asking for directions and getting a cryptic riddle instead!

According to Telegram, the SEC was aware that if the TON blockchain didn’t make its grand debut by October 31, 2019, Telegram would have to refund its investors, yet they didn’t voice any concerns until the last minute. Talk about a dramatic entrance!

Gram: Currency, Not Security

Telegram has taken a stand and declared, “Hey SEC, Grams are merely a currency or commodity, not a security!” They’ve asserted that their private placements were conducted under valid exemptions, kind of like a VIP club that doesn’t require a bouncer. The company claims once the TON launches, Grams will be more akin to precious metals—think gold or silver—rather than a stock you can buy on Wall Street.

Not Your Traditional ICO

To add more spice to the legal stew, Telegram has emphasized that they didn’t pull off an Initial Coin Offering (ICO) in the traditional sense. Instead, they’ve navigated the murky waters with private purchase agreements. They believe this keeps Grams out of the security limelight—a nifty trick to avoid SEC scrutiny.

Telegram asserts, “We are not even participating in the ICO crowd!” It’s a bold declaration that highlights their distance from the more infamous ICO launches that often left investors holding empty wallets.

The Upcoming Showdown

Just when you think it’s quiet, the SEC has clapped back with temporary restrictions on the issuance of Grams. Their next performance will unfold in court on October 24, and it’s sure to be a must-watch event. Will Telegram’s arguments hold up like the last slice of pizza, or collapse under pressure? Only time will tell in this saga of tech giants, cryptocurrencies, and federal regulations.