March 24 court for the southern district of new York preliminarily prohibited to transfer tokens Gram primary investors of licensee Telegram Open Network (TON).
Thus, the court supported the position of the securities and exchange Commission (SEC), recognizing Gram of unregistered securities.
Telegram can appeal. If the network TON not start until April 30, the primary investors will have the right to demand their money back.
ForkLog learn from the experts, does this temporary ban was defeated in the battle with the SEC and how critical may be the return to their investors for the further development of the project.
Sergei Mendeleyev, the founder of the cryptocurrency exchanges Garantex:
The SEC decision is a serious blow to the entire market of new financial technologies in the IT investors and enthusiasts who took an interest and participated in the development of the cryptocurrency market. Although we are talking about one national regulator, in fact this decision concerns the whole world, as for SEC there are no borders in their traditional sense. It is sufficient to Burkina Faso to sell one token to the citizen of the United States, and the project falls under the scope of SEC.
The SEC ban on the sale of token-TON including the interim decisions of the courts in fact already final. Now the question is not so much about the survival of the project, and whether using this test to pass, the team of Pavel Durov. It depends on what will eventually be the verdict and what the penalties will be determined, in addition to returning funds to investors.
Alexey Kirienko, Exante managing partner:
Probably, lawyers of Pavel Durov would appeal, but likely to struggle with the SEC they have a little bit. This leads to the fact that the Telegram will have to return to investors the money invested. However, I think that Paul will try to run the project, using all the options.
In any case, the lesson TON has been extremely valuable for the industry. He showed all the doubters how important real decentralization.
Anton Kravchenko, CEO of Xena.Exchange:
The result of this decision of the court may be either the return of funds to American investors (SEC only regulates the sale of securities in the U.S.), or a fine.
However, we must note that the actions of the TON there was no fraud or investor fraud, investors were aware of all the conditions and the risks and voluntarily went into a transaction.
Selling tokens, TON tried to comply with the requirements of the regulator, filled out REG D, restricted circle of investors are professional investors, given the right disclaimers.
Again, the TON project was supported in the United States and other blockchain projects, tried to explain to the SEC that such actions hurt the entire industry.
The SEC generally likes fines, and I tend to think that this story will end just fine, and the TON project can move forward.
Mansour Huseynov, independent expert:
I believe that this ban gives the SEC more time to finalize their position. Perhaps the delay also stems from the fact that it is necessary to develop a common approach to all similar projects, because tocancel TON not only is that a very large scale.
The American market for Telegram, of course, important, it is a huge market. I suppose that if you return the investors funds, the project will have to freeze.
Roman Jankowski, Advisor practices IP/IT companies Tomashevskaya & Partners, teacher of Moscow School Digital:
First, the ban is temporary, it can be appealed and the decision is not final. And do not fact that will be the final decision, given the fact that the SEC often enters into settlement agreements in such cases. I want to believe that here the parties come to some kind of compromise.
Of course, all roads lead to the loss of the Telegram, and it shows on the court, which adopted all the arguments of the Commission. And probably Durov will have to return some of the money to investors, and as we know, about a third of it already spent on development. The big question is, can the company withstand the final judgment. It is unlikely that a Telegram would evade its execution, for fear of American justice.
Alexei Markov, senior trader at United Traders:
I think it’s definitely final. There is still to be an appeal and hearing, but in the form in which you have been waiting for TON, we shall not see it.
The best would be option if Durov keeps his word and will be able to recover some of the money, but it is not very clear how it will be supported by infrastructure. The Western market is certainly important for the project, and it is not in the audience of the messenger.