US Judge Orders UK Court to Depose Telegram’s Advisor About Token Sale
U.S. District Court Judge P. Kevin Castel in New York signed an order to Britain's High Court to depose John Hyman, Telegram's chief investment officer.
With the SEC lawsuit holding up the launch of Telegram's TON network, the Japan-based exchange has cancelled its sale of gram tokens and refunded investors.
The SEC produced evidence that Telegram kept selling tokens after its ICO, undermining the firm's argument that the sale was exempt from registration.
Telegram launched its token sale because it was "short on cash" to pay for servers, the SEC said.
Telegram will not integrate a crypto wallet into its messaging app, at least until it gets the green light from U.S. regulators, the company said Monday on its official website.
Telegram has been ordered by a judge to explain why it should not have to turn over bank documents relating to its $1.7 billion initial coin offering.