Bitcoin
$41,653.80-5.46%
Ethereum
$2,893.16-6.72%
XRP
$0.907217-3.59%
Cardano
$2.06-4.80%
Polkadot
$27.62-7.40%
Stellar
$0.274855-4.10%
Dogecoin
$0.206033-4.36%
Chainlink
$22.58-8.39%
Uniswap
$20.17-7.91%
Polygon
$1.11-8.53%
Litecoin
$154.75-4.34%
Bitcoin Cash
$526.19-4.73%
Cosmos
$32.95-12.53%
Algorand
$1.65-4.49%
Wrapped Bitcoin
$41,678.26-5.55%
Filecoin
$72.34-6.31%
The Graph
$0.678210-7.04%
Tron
$0.092543-2.86%
Ethereum Classic
$47.65-6.36%
Aave
$283.77-7.90%
Tezos
$4.99-9.73%
Monero
$222.58-6.11%
NEO
$39.60-8.69%
EOS
$4.05-6.70%
IOTA
$1.26-8.88%
BitTorrent
$0.003267-5.98%
Bitcoin SV
$142.77+2.37%
Maker
$2,429.20-4.57%
Waves
$22.66-6.05%
Dash
$165.75-7.57%
Decred
$110.92-12.57%
Decentraland
$0.647003-9.32%
ICON
$1.54-10.77%
OmiseGO
$9.56-9.94%
NEM
$0.147800-8.63%
Zcash
$113.34-6.61%
Paxos Standard
$1.01-0.72%
NuCypher
$0.273580-5.00%
Yearn Finance
$28,685.68-5.22%
Qtum
$9.90-9.45%
Bitcoin Gold
$52.79-7.61%
Basic Attention Token
$0.640112-5.00%
0x
$0.888742-6.67%
Bancor
$3.42-6.51%
Ren
$0.771107-4.00%
Fetch.ai
$0.649457-7.22%
Band Protocol
$7.34-8.35%
Kava.io
$5.01-4.89%
Siacoin
$0.014825-8.22%
Nano
$4.56-7.60%
Loopring
$0.395154-4.06%
Storj
$1.09-8.30%
Numeraire
$39.17-7.48%
Lisk
$2.96-5.38%
Civic
$0.401863-7.99%
Orchid
$0.365509+7.92%
PAX Gold
$1,780.22+0.74%
Augur
$21.08-7.60%
Enzyme
$106.16-1.60%
Aragon
$4.84-9.87%
district0x
$0.147572-6.14%
Kyber Network
$1.45-7.24%
SingularDTV
$0.001384+1.72%
Tether
$1.00+0.01%
USD Coin
$1.00+0.01%
Dai
$1.00+0.05%
Breaking news: US Sanctions Enforcer Blacklists a Crypto Exchange for First Time

Making Sense of the SEC's Case Against Telegram

Telegram lost another round in court against the SEC and now can’t launch its $1.7 billion token sale. What does it mean for the crypto industry and other startups that sold tokens?

Apr 12, 2020 at 2:00 p.m. UTC
Updated Sep 14, 2021 at 8:28 a.m. UTC

Telegram lost another round in court against the U.S. Securities and Exchange Commission (SEC) and now can’t issue the tokens sold during its $1.7 billion fundraising campaign. What does it mean for the crypto industry and other startups that sold tokens?

Listen/subscribe to the CoinDesk Podcast feed for unique perspectives and fresh daily insight with Apple PodcastsSpotifyPocketcastsGoogle PodcastsCastboxStitcherRadioPublicaIHeartRadio or RSS.

Telegram, the popular messaging app, has big plans for its blockchain Telegram Open Network, or TON. It also had one of the biggest token sales in history, followed by a huge legal fight over it.

The SEC sued the company to halt the TON network, saying its native gram tokens were unregistered securities. Telegram argued grams were a commodity. A federal judge in New York issued a preliminary injunction agreeing with the SEC, blocking Telegram from issuing tokens. 

The court battle has been an interesting one, as is the ruling of the judge.

Together with two experienced attorneys, Gabriel Shapiro of BSV Law and Phillip Moustakis of Seward & Kissel, we’re unpacking this process, which is likely to set a precedent for other token sales structured as SAFTs, or simple agreements for future tokens – starting with Kik and potentially followed by many more.  

  • SAFTs used to be a popular form of fundraising in crypto. What went wrong for Telegram? 
  • Is there still a chance an ambitious proof-of-stake blockchain will still get launched? 
  • Is there a safe way to raise money via a token sale or not? 
  • What are the remaining options for Telegram – and for its investors? 

See also: 

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...