SEC to Use Info From Investors to Stop GRAM ICO

The regulator’s lawsuit against the company does contain info that was not supposed to be divulged
15 October 2019   635

In preparing the lawsuit against the Telegram Open Network (TON), the US Securities and Exchange Commission (SEC) relied heavily on information received from project investors, CoinDesk reports.

This was confirmed to the Internet publication by the CEO of HASH CIB, Yakov Barinsky, who advised some of the funds that invested in TON. According to him, in September, the regulator contacted the American investors of the project and requested information about the data that was provided to them for its promotion.

I know that the SEC reached out to them asking how the deal was arranged, what information TON shared, what documents have been circulated and whether there was any omission of information.

Yakov Barinsky


The regulator’s lawsuit does contain information that was not supposed to be divulged. In particular, the SEC cites “a presentation for a single investor from the US in January 2018.” To attract him, “Telegram talked about his“ high-level technical service ”and“ the possible return on investment in 0x-50x ”.

SEC used the information received to substantiate the conclusion that during the Gram token sale the placement of unregistered securities.

$27.5 million worth of Grams in early 2018 for tokens that had no use and would have no use at the time of launch, demonstrating its intent to profit from the potential increase in value of Grams.


It was probably investor evidence that enabled the SEC to classify Gram as a security. According to the Howie test, the regulator received confirmation of the fact of investments and expectations of profit from them. In addition, the funds are invested in a regular enterprise and the size of the possible profit does not depend on the efforts of the investor.

However, two other TON investors interviewed by CoinDesk said they were not promised a “0x-50x return.” Such inconsistencies in disclosed information could be another alarm to the SEC.


Dutch Crypto Startup Founder Busted

Komodore64 said they developed blockchain games and sold $86 000 000 worth K64 tokens, but investors don't receive any profit
13 November 2019   216

Dutch police arrested the founder of blockchain startup Komodore64, who allegedly raised $ 86 million from private investors. The company has already filed for bankruptcy, and investors and employees accuse it of fraud, according to Sprout.

Komodore64 developed blockchain games and invited investors to invest in the K64 native token. One of the investors, the newspaper writes, lost 600 thousand euros. As soon as partners and employees publicly stated that they had not received the promised fees, the company filed for bankruptcy.

Founder Sam Narain allegedly convinced investors that the startup supported the banking giant Goldman Sachs, but a group of bank representatives at one of the meetings turned out to be fraudulent.

In recent weeks, Narain has been living in the Hague Hilton, where he was hiding from angry investors. The names of his possible accomplices are still unknown, as is the fate of money.

Employees claim that only a party in honor of the launch of the project cost tens of thousands of euros.