Sadeghi Quoted on SEC Complaint Against Telegram Token Sale


Sadeghi Quoted on SEC Complaint Against Telegram Token Sale

In The News |

Law360, Cryptonews

Partner Kayvan Sadeghi was quoted on the U.S. Securities and Exchange Commission’s (SEC) complaint against Telegram Group, Inc., owners and operators of the blockchain, Telegram Open Network, and its native token, Gram.

Telegram raised $1.7 billion in its initial token sale in 2018. In late 2019, the SEC obtained a restraining order halting the sale before later filing an application for a preliminary injunction, citing violation of registration provisions of federal securities laws for digital-asset securities.

The SEC and Telegram later agreed to a stipulated injunction that would have expired the date of the hearing.

Judge P. Kevin Castel did not immediately rule on the merits of the SEC’s application, and both parties agreed to keep the injunction in place until a decision is released.

Kayvan said, “Judge Castel clearly understands the issues, and was careful not to tip his hand as to how he will rule.”

"The easier decision for the court is to leave an injunction in place,” he added. “The difficult decision is to rule against the SEC and allow Grams to be distributed — it's hard to wind it back later once that's been done."

Kayvan suggested the judge may give his ruling by early to mid-March.

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