In the United States through the court banned the release of cryptocurrency Telegram

The Securities and Exchange Commission of the United States of America (SEC) has filed an urgent action lawsuit against court

Pavel Durov Telegram Group Inc. and its subsidiaries TON Issuer Inc.

What happened

The Gram cryptocurrency has become a stumbling block.which became the brainchild of Telegram. The Commission believes that offshore companies conduct unregistered initial public offering (ICO) of tokens in the United States and abroad.

Since January 2018, Telegram and TON have attracted 1.7billion dollars to create the TON blockchain platform with the Gram cryptocurrency. Also, during this time, they sold about 2.9 billion Gram digital tokens at discounted prices to 171 primary buyers around the world, including more than 1 billion Gram to 39 investors in the United States.

Telegram promises investors to issue cryptocurrency and open access to it by October 31 of this year.

What is the problem

The Securities and Exchange Commission says thathowever, investors were not informed about the transactions with tokens, the financial situation of companies and risk factors and management, as required by the law on securities. In addition, the creators of TON did not register the sale and further circulation of the Gram cryptocurrency, which is a violation of the provisions of the American Securities Act of 1933.

“Our urgent actions are aimed at preventing Telegram from flooding the US markets with digital tokens, which we believe were sold illegally,” said SEC representative Stephanie Avakyan.

The court approved the lawsuit and temporarily prohibited the initial offering of tokens. Telegram will also have to pay a fine.