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   197

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.

Telegram's Lawyers

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

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