The ongoing case between the Securities Exchange Commission (SEC) and Telegram and the GRAM tokens ICO sale, is facing yet another delay after the messaging app service requested for five to seven weeks to compile the documents needed by the SEC on their 770 investors in the token.
According to reports from Inner City Press, who were present during the January 6th teleconference hearing by Federal Judge P. Kevin Castel, Telegram’s law counsel, Alex Drylewski of Skadden Arps, asked the courts to delay the hearing further citing timely difficulties in submitting the bank records of their investors.
Telegram’s counsel further explains that the difficulties arise from technical terms regarding privacy with over 30 financial institutions that they dealt with during the GRAM sale. The judge did not extend the deadline set for January 9th, ordering Telegram to provide the records needed by the SEC, and file a “proposed schedule to disclose or at least review for privacy the requested bank records.”
However, by January 9th, Telegram had completed only reviewed 76 of the 770 investors accounts over 12 jurisdictions hence asked the court to give them one to two months to complete the review process.
Will Telegram refund investors fuds?
The continuing battle between the SEC and Telegram is threatening to kill off the dream of GRAM tokens coming to the public. The court stated,
“After briefing, there will be an in-person hearing on February 18, on both the motions for preliminary injunction and for summary judgment.”
However, if the court will not have resolved the matter by April, which marks the first anniversary of the launch of GRAM tokens, Telegram will be obliged to refund the investors’ funds under the terms of private placement. This will set the highly awaited project back to square one killing off any hopes of the “security” (as the SEC terms it) launching.