NY Court Orders Telegram to Reveal Its ICO Bank Records

Source: Finance Magnates 2020-01-13

According to a court order dated Monday, federal judge Kevin Castel ordered encrypted messaging app Telegram to disclose its bank records by February 26. The decision comes a few days after the same judge informed the Securities and Exchange Commission that it will not be given full access to Telegram ICO's banking and financial details.

Telegram has to present a schedule for the review of its financial information

as the court doesn’t plan to extend the deadline. The legal notice further reads:

Earlier this month, the SEC requested the Southern District of New York Court to pass a motion forcing Telegram to turn over a number of documents pertaining to its Gram token sale, which raised $1.7 billion from accredited investors, many of whom were US citizens.

Telegram argued that its bank records comply with foreign data privacy laws, but the SEC renewed its request and stated, “Telegram does not even mention the names of the foreign countries whose laws might apply, nor does it cite any specific data privacy laws.”

Telegram had reportedly sold its Gram virtual coins in two private funding rounds, with proceeds going to create a decentralized network for the app. At the time, Telegram already reported to the SEC that it had raised the funds in private placements, which were used to develop TON blockchain. Since the ICO excluded retail investors, the firm claimed an exemption from US requirements to register their tokens as a security until the SEC has stepped in to halt Telegram crypto ambition.

NY Court Orders Telegram to Reveal Its ICO Bank Records

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