Telegram accepts to hand over its ICO documents to the SEC

Popular messaging app Telegram has agreed to share documents that disclose the transaction details of its 2018 ICO with the SEC. Reportedly, Telegram filed an order consent on May 7 agreeing to provide the SEC with the documents it had requested. The communications and documents concern the distribution of Telegram’s gram tokens.

Per the filing, Telegram accepted to hand over the requested documents after the SEC won an injunction that ordered the firm to do so before May 20. The SEC aims to examine all communications regarding any agreements that telegram entered into with the initial purchasers of its token. Telegram will also provide bank records to the financial watchdog. On top of this, the firm will have to respond to questions concerning the financial statements that it has already provided.

The SEC also requires Telegram to provide information regarding any assets disbursed to the initial buyers under the purchase agreements. Additionally, the regulator needs the company to deliver details on any assets that it received from the initial purchasers in connection with the termination of the purchase agreements.

Telegram also agreed to the SEC’s discovery requests from February and has decided not to object for timeliness’ sake. However, the firm has reserved all other rights and objections.

Free Ton community rolls out the free version of Telegram Open Blockchain

Telegram filed its consent order on the same day that the Free Ton community, which comprises an independent group of software developers, validators, and users launched the Free TON blockchain. The blockchain would run on the Telegram Open Network, which was created by Telegram. While Telegram developed the network, the Free Ton community had previously noted that it would proceed to launch the network despite Telegram’s dispute with the SEC.

Although Telegram’s CEO Pavel Durov, had decided to put a hiatus on the launch of TON, the community proceeded to roll out the blockchain, saying Telegram can no longer be involved with the project.

According to the community,

“Legal proceedings in the U.S. mean that Telegram, the initial creator of TON (Telegram/The Open Network) blockchain, can no longer be involved […] We hope that Free TON will promote the values of the free market, personal data protection, decentralized governance, censorship resistance and cooperation around the world.”

Do you think Telegram will win its long-running legal dispute with the SEC? Share your thoughts in the comment section below.