The United States District Court for the Southern District of New York has tabled the hearing to concerning the Securities and Exchange Commission’s (SEC) cease and desist order submitting towards Telegram Open Network (TON) and its Gram token to Feb. 18-19, 2020.
As Cointelegraph reported lately, following Telegram’s counterclaim on Oct. 16, the place the agency argued that its native crypto isn’t a safety and the preliminary cease and desist order must be denied, the SEC has responded with a brand new submitting inside the New York Court on Oct. 17.
Court hearing to tabled to 2020
According to a TRO filed on Oct. 11, Telegram ought to have been at a court docket hearing to in New York on Oct. 24. Yet the newest court docket order states that the hearing to shall be held on Feb. 18-19, 2020:
“IT IS ORDERED that Defendants shall not offer, sell, deliver, or distribute “Grams” to any individual or entity, till the conclusion of the hearing to regular by the Court for February 18 and 19, 2020 (“Hearing”), besides upon extra order of the Court or settlement of the events. At the Hearing, any get together could transfer the Court for the continuation or dissolution of this Order.”
Recently, the SEC has claimed that not only did Telegram violate the U.S. securities legal guidelines throughout its preliminary coin providing (ICO), even so it is also in search of a preliminary cease and desist order to forestall Telegram from extra violations.
The SEC said that Telegram’s proposal to disclaim the cease and desist order would permit them to proceed to violate laws after 5 months, and put the burden on the SEC to hunt one other short-term restraining order.
The SEC intervened simply earlier than TON’s launch
The SEC has introduced an emergency motion towards Telegram on Oct. 11, simply weeks earlier than the deliberate launch of the Telegram Open Network.
Telegram requested a U.S. court docket to disclaim the motion, prompting a response from the SEC in search of a preliminary cease and desist order.
While Telegram has planned to table the launch of TON, a “force majeure” clause inside the buy settlement for TON’s native Gram tokens has made traders involved that Telegram may abandon its obligations to return monetary imagination from Gram token gross revenue inside the occasion of a delay.
Telegram traders should determine whether or not to increase the TON launch by Oct. 23. Should such a proposal cross, TON would tentatively launch on April 30.