SEC to Want to Disclose TON ICO Financial Statements

The Commission would like to know what the team had done with the $1.7B, raised during tokensale two years ago
05 January 2020   622

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.
 

SEC

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.
 

Telegram's Lawyers

Now Judge Castel has to decide whether to approve the SEC petition and request financial documents from Telegram.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   878

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.