The Telegram messaging platform appealed a U.S. court decision that prohibits the distribution of its cryptocurrency “Gram”
US District Judge P. Kevin Castel of the Southern District of New York said on Tuesday that the $ 1.7 billion Telegram token sale in 2018 appeared to be an unregistered sale of securities and prevented company to issue Grams after the launch of its ‘Telegram Open Network’.
The decision granted an injunction request by the US Securities and Exchange Commission (SEC), which sued Telegram last October.
Telegram issued a note late on Tuesday saying it would appeal the decision to the United States Second Circuit Court of Appeals, although it did not provide further details at the time of publication.
Telegram originally intended to launch its blockchain last year, but postponed the date to April after the SEC’s action began.
Lawyers Lewis Cohen and Gabriel Shapiro agreed on Twitter that the judge’s decision made sense, but both wanted more clarity and guidance.
Shapiro wrote on Tuesday night that “I would not be surprised if Telegram appeals”, although, in his opinion, “it is mainly a matter of appetite for ongoing litigation and how willing SAFT buyers are. [acordo simples para futuros tokens] are negotiating a new agreement with Telegram on these issues ”.
Likewise, Coin Center research director Peter Van Valkenburgh wrote that the decision was “clear and well-founded”.
“The novelty in this case, and in the SEC’s complaint, is the claim that the buyers of the pre-sale agreement are underwriters. In other words, they are part of the scheme to sell tokens to the public ”, said Van. Valkenburgh.
“That way, these investors would not be able to take advantage of a safe haven under existing law,” he added.