Encrypted messaging service Telegram has requested the New York Southern District Court to throw out accusations by United States regulators that its in-house cryptocurrency is a safety.
In a contemporary submitting on Nov. 12, Telegram’s attorneys didn’t mince their phrases as they accused the U.S. Securities and Exchange Commission (SEC) of abandoning simply observe in its criticisms.
Telegram: SEC “adopted ad hoc legal position”
The SEC had beforehand argued Telegram was participating within the sale of unregistered securities when it bought its GRAM tokens to vetted traders. Despite the strain, traders rejected a refund of cash paid.
The submitting claims in regards to the SEC:
“…Plaintiff has engaged in improper ‘regulation by enforcement’ in this nascent area of the law, failed to provide clear guidance and fair notice of its views as to what conduct constitutes a violation of the federal securities laws, and has now adopted an ad hoc legal position that is contrary to judicial precedent and the publicly expressed views of its own high-ranking officials.”
Lawyers subsequently ask the court docket to dismiss the SEC’s grievance totally.
SEC probes grind on
Telegram’s token launch has seen a number of hurdles over the previous eighteen months. The firm initially raised $1.7 billion in its preliminary coin providing (ICO).
The motion is only one of a number of battle fronts for the SEC, which can also be engaged in proceedings with Canadian messaging service Kik over its $100 million ICO from 2019.
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