Telegram lawyers are asking the court to reject the application of the US Securities and Exchange Commission (SEC), which wants to receive information about the use of funds raised by the messenger during the ICO. In a letter to Judge Peter Kevin Castell, they refer to the SEC request as an attempt to find incriminating evidence about the company without any reason for this.
On January 2, the SEC asked the court to issue an order that would allow it to receive accounting documents reflecting how Telegram disposed of the $ 1.7 billion it collected on the token sale two years ago.
Plaintiff respectfully moves to compel Defendants to answer questions and provide documents regarding the amounts, sources, and use of funds raised from investors in connection with the unregistered sale of securities at issue in this case. Defendants are now refusing to disclose the bank records concerning how they have spent the $1.7 billion they raised from investors in the past two years and to answer questions about the disposition of investor funds.
In a response statement, lawyers wrote:
On behalf of Defendants, we write in opposition to the letter motion filed by (the SEC), seeking to compel the production of voluminous and highly sensitive bank records that have little to no bearing on the claims and defenses in this action and would impose undue burdens on Defendants. Plaintiff's letter misconstrues the legal issues in the case and omits critical facts. Defendants respectfully submit that Plaintiffs motion to compel constitutes an unfounded fishing expedition and should be denied.
Now Judge Castel has to decide whether to approve the SEC petition and request financial documents from Telegram.