Telegram has undeniably one of the leading platforms for the crypto community. However, the Securities and Exchange Commission is currently investigating the platform’s token sale and in contrast, it has informed that it needs around 5-7 weeks of time to gather SEC requested details.
Telegram is yet to share SEC’s requested details
The report was first shared by Telegram’s law firm Skadden via Inner City Press on January 09, 2019. It was reported that the lawmakers requested full bank details of 770 individuals or entities in over 12 countries.
The law firm Skadden has so far reviewed only 76 entities since September. Henceforth, it is requesting to exceed the time to at least 5-7 weeks more.
Essentially, SEC is urging Telegram to share bank details of parties involved in the company’s $1.7 billion worth token sale. On the other hand, Telegram denied acting. However, the court then proceeded the case and ordered Telegram to share “a proposed schedule for a review of the requested bank records to ensure that production of such records complies with foreign data privacy laws”.
This being said, Telegram had January 09 as the last date to submit the proposed schedule.
With the latest report into consideration, the law firm seeks around 5-7 weeks’ time to work upon the order. It’s worth noting that the legal watchdog claims Telegram sold unregistered securities and henceforth seeking to gain the company’s financial account to ensure the proper conduct of the token sale. Alongside this, it also wants to understand how the funds are being used that it raised two years ago.
While Telegram is dealing with legal affairs for quite long, the platform didn’t step back sharing the current state of the development of TON (Telegram Open Network blockchain).
In a most recent public notice on its website, the Telegram team informed that they will have no control over upcoming TON Blockchain – it further reasoned that the TON Blockchain will be decentralized and maintained by third parties.