For the procedure initiated by the SEC on 11 October, with the request for the blockade of the TON Blockchain Network and gods Gram Token in the USA, Telegram Group INC has decided to file a memo with the New York District Court.
According to the statement of the SEC in fact, Gram would violate the rules in the field of financial instruments and those of United States securities. Telegram however stated that the TON Blockchain Network is going to be structured through a private collection that was activated in January of the 2018, with a collection through investors equal to 850 million dollars, destined for pre-purchase of GRAM.
The collection would have been carried out following the Regulation D and the Rule 506 (c) for buyers who are US residents and with Regulation S for buyers outside the country as required by the United States Securities Act of 1933.
The contract provided that in the case where the Gram Token had it not been launched by 31 on October 2019, Telegram should have repaid the investments received. But following the blockade with the SEC, the company had to find a new deal with the investors.
The 13 February of the 2018, Telegram had notified the SEC an first private placement as an exception to the provisions of the security act. In the meantime, in about a month, the company has completed its investment collectioni reaching the 850 million dollars, always through the exception regulated by the SEC, thus bringing the collection a total amount equal to 1,7 billion dollars. With a second notification of the SEC the 29 March of the 2018.
All this operation, according to the legal representatives of Telegram, would have been part of the investment contract legislation and related deeds, which included all the clauses required to apply the legislation, including restrictions on the sale, offer and transfer of GRAMs.
For Telegram the GRAMs must be considered Payment Token
In its resolution regarding the problems with the SEC, Telegram wanted to highlight that the GRAMs they have not been issued so they cannot be defined, and that at the most they could be considered payment tokens useful for solving the problems that may arise regarding the purchase of network services and goods.
The heart of Telegram's defensive memory it is found in the document produced by the company, where it also invokes the fair trial as established by the Constitution of the United States in the fifth amendment, and as confirmed by a decision of the Supreme Court in 2012 in the sanction between Fox Television e Federal Communication Commission.
In short words, according to Telegram's lawyers, in the absence of regulation or regulation, the SEC cannot declare GRAM and its illegitimate sale within the USA, on the basis of an interpretation of norms that are dated, such as the 1933 securities law.
Furthermore, within the memory filed with New York District Court, there are several precedents in which in the presence of regulations and imprecise norms on limits and prohibitions, it is not possible to issue condemnations towards those who could not effectively understand the scope of such regulations and norms, otherwise it could open the way to discriminatory and arbitrary sentences.
Telegram's lawyers they wanted to emphasize that the founder of the company Pavel Durov is a Russian citizen and who is an opponent of Russia, which forced him to leave her, thus adding to the trial also the personal situation of the Durov brothers, and their ethically correct behavior towards the United States.
All arguments have been presented, now the statements of the New York District Court are awaited. In the end, this cause will in any way end up certainly represent a very important judicial precedent for the world of cryptocurrency and its legislation.