Court Refused SEC Inquiry On TON Fin Info Disclosure

As reported, there still remains the possibility that the regulator will gain access to at least part of the requested information
08 January 2020   180

The New York Southern District Court rejected an attempt by the US Securities and Exchange Commission (SEC) to obtain banking documentation from Telegram regarding the sale of Gram tokens.

According to FinancialFeeds, the judge made an inconclusive decision to reject the SEC application.

There remains the possibility that the regulator will gain access to at least part of the requested information, the publication notes. By January 9, Telegram must provide a schedule for checking bank records so that the court makes sure that they comply with foreign privacy laws.

The SEC petition stated that financial data on how Telegram and TON Issuer spent the $ 1.7 billion raised from investors during the Gram token sale are “highly relevant to the issues in dispute in this case”.

Court Orders Telegram to Unveil Its ICO Bank Records

The decision was made a few days after the court rejected the request of the SEC for full access to Telegram financial info
14 January 2020   125

Federal Judge Kevin Castel issued a decree this Monday, according to which the developer of the Telegram messenger should disclose bank records by February 26th. About it writes Finance Magnates.

The decision was made a few days after the judge rejected the request of the US Securities and Exchange Commission (SEC) for full access to Telegram financial information. Telegram must also submit a plan to review the requested data, while the court no longer intends to postpone the deadlines.

In light of the parties’ arguments presented in their letters and during the January 6, 2020 telephonic conference, the Court orders defendants to produce the requested bank records. The bank records may be produced under a Confidentiality Order. Only redactions necessitated by foreign privacy laws shall be permitted and a log stating the basis for any redaction shall be produced at the time the redacted documents are produced. Defendants shall produce the bank records on a rolling basis and shall complete production by February 26, 2020. The Court does not anticipate extending this date nor the existing schedule for the motions for summary judgment or for a preliminary injunction.

 

Kevin Castel

Federal Judge