Support The Moscow Times!

Telegram May Delay Coin Launch as SEC Halts U.S. Sales

Telegram's digital coins will be called Grams. Alexander Avilov / Moskva News Agency

Telegram, a popular encrypted messaging app with about 300 million users, may postpone plans to launch its own cryptocurrency after the Securities and Exchange Commission (SEC) obtained a restraining order to stop the sale of the tokens in the U.S.

The company, which raised more than $1.7 billion last year for its project, told investors it’s evaluating ways to resolve the agency’s concerns, including potentially delaying the issuance of the tokens beyond its October 31 target, according to a note sent to investors and seen by Bloomberg News.

Investors bought rights for Grams — the digital coins — at a steep discount, with the opportunity to resell them at a “reference price” of $3.62, almost three times the maximum cost of the rights, according to the SEC complaint.

The agency said that the fund-raising was illegal in the U.S. because Telegram never registered its offering with the regulator, according to a filing made public October 11. Telegram raised more than $425 million from U.S. investors.

The company told investors that it has been in talks with the U.S. regulator for the past 18 months regarding its project.

“We were surprised and disappointed that the SEC chose to file the lawsuit under these circumstances,” the letter said. Telegram didn’t respond to Bloomberg’s request for comment.The SEC has had long-standing concerns regarding the industry.

The regulator has proven to be a major obstacle for the digital-token market in the past, preventing many from making ground in the U.S.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more