Telegram Denied: Court Sides With SEC, Grants Injunction Against Issuing GRAMs

Telegram Denied: Court Sides With SEC, Grants Injunction Against Issuing GRAMs

Gate Trade News Wednesday, March 25, 2020 14 0

A United States District Court has granted an injunction against Telegram, preventing the company from issuing its GRAM tokens at the present time.

Court says that GRAMS are securities under Howey test

Per a March 24 filing granting the Securities and Exchange Commission’s request for a preliminary injunction, the Court wrote that:

 

“The Court finds that the SEC has shown a substantial likelihood of success in proving that  the contracts and understandings at issue, including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion, are part of a larger scheme to distribute those Grams into  a secondary public market, which would be supported by Telegram’s ongoing efforts. Considering the economic realities under the Howey test, the Court finds that, in the context of that scheme, the resale of Grams into the secondary public market would be an integral part of the sale of securities without a required registration statement.”