Telegram’s Legal Showdown with the SEC: What’s at Stake?

Judicial Drama Unfolds

In an intriguing twist in the legal saga between Telegram and the U.S. Securities and Exchange Commission (SEC), Pavel Durov, founder of Telegram, is set to take the stand along with two of his colleagues. Mark your calendars, folks—January 7 or 8, 2020, is when we’ll get to hear the action unfold in a courtroom in the Southern District of New York. Talk about must-see TV!

Who’s Being Grilled?

Telegram’s Vice-President, Ilya Perekopsky, isn’t shying away from the spotlight either; his deposition is scheduled for December 16, 2019. Adding to the excitement, Shyam Parekh, a pivotal employee in the $1.7 billion Gram sale, will also testify on December 10, 2019. Grab your popcorn; this courtroom is going to be lively!

What’s the Beef?

At the heart of the matter is the SEC’s assertion that Telegram’s Gram tokens represent unregistered securities. Durov’s deposition will delve into these claims where Telegram insists, “We’re not selling securities here, folks!” Back on October 16, they countered the SEC with their own claims, stating that their crypto tokens are not securities and demanding the SEC’s preliminary injunction be tossed out like yesterday’s leftovers.

Launch Postponed—Again!

Thanks to the SEC’s injunction, the much-anticipated launch of the Telegram Open Network (TON) has been delayed from its original October 31 date. Remember those purchase agreements from the Gram sale? They included a rule: if TON wasn’t live by Halloween, refunds could be in the mix. However, investors decided to keep their funds with Telegram—proof that faith runs deeper than just a financial transaction. Because of this decision, the potential launch has been bumped to April 2020. It’s a thriller, folks!

A Courtroom Saga Continues

The date for Telegram’s court appearance was originally set for October 24, but the plot thickened as the case moved to February 2020. Telegram reassured investors via a letter on October 19 that this delay could pave the way for resolving their regulatory headache. In cases like this, sometimes patience is a virtue—at least until more courtroom drama unfolds!