Telegram CEO Pavel Durov gave a deposition concerning the corporate’s alleged violation of United States securities regulation by conducting $1.7 billion Gram token sale in 2019.
In line with a related court docket order, the deposition was held on Jan. 7 and Jan. eight earlier than a court docket reporter designated by the court docket reporting service engaged by plaintiff represented by the United States Securities and Exchange Commission (SEC).
SEC makes use of the 18-hour deposition to proceed grill Telegram on the way it spent $1.7 billion
According to the official transcript doc, the deposition was held in Dubai and concerned Telegram lawyer Alexander Drylewski and SEC official Jorge Tenreiro. The first a part of the deposition on Jan. 7 began at 11:21 AM to finish at 10:00 PM, whereas the second on Jan. eight was a bit shorter, starting at 10:23 AM and ending at 06:09 PM, native time.
The deposition was videotaped, whereas the accessible official transcript document is fragmented, with vital components of the deposition having been omitted supposedly for the sake of confidentiality.
During the deposition, which mixed took round 18 hours with breaks, the SEC questioned Telegram extensively on the corporate’s bills and funding used to arrange the agency. Responding to at least one such query, Durov answered that the corporate plans to proceed to spend funds in a manner just like budgets from earlier years:
“My expectation is that we will continue to spend funds in a manner similar to which took place last year or this year — or, yeah, last year and the beginning of this year. So we don’t anticipate big changes up until the launch of TON when we expect that certain expenses might go down due to the fact that we will no longer be spending resources on developing and testing TON.”
Telegram will distribute some Grams amongst its devs
Tenreiro additional requested the defendants on what proportion of Grams out of the 5 billion tokens in circulation shall be held by Telegram’s staff upon the launch. In response, Durov reconfirmed that Telegram is not going to maintain any Grams after the launch of the Telegram Open Network (TON). Telegram CEO added that the agency plans to distribute 4% of Grams amongst its builders, noting that they’re nonetheless “evaluating” actual figures:
“I can reconfirm that Telegram will not hold any Grams post launch. We mentioned in the offering materials that we plan to distribute 4 percent of Grams, which should be around 200 million Grams, I believe, among the development team, and we are still evaluating, under the circumstances, whether we would proceed with that initial plan of distributing all or some of those 200 million Grams among the developers that worked on TON.”
The SEC additionally didn’t miss the possibility to ask Telegram about incentives for its builders, concerning which Durov talked about Telegram’s good contracts contest introduced in September 2019. The government added that the prize finances is “is still there” and the agency continues accepting and rewarding people inside the program.
Durov funded Telegram between 2012 and 2019 by cash from the sale of VKontakte
According to a deposition transcript acquired by Russian publication The Bell, Durov financed Telegram from his private expenditure coming from the sale of VKontakte (VK) in 2014. Durov, who based the Facebook-like Russian social media web site again in 2006, claimed that he used his funds from VK from 2013 up till 2019.
Additionally, Durov stated that Telegram’s employees depend has not modified a lot since 2019, accounting for 25 staff who “write programming code.” The agency has additionally concerned “hundreds of independent contractors” although, Durov added.
As lately reported by Cointelegraph, Telegram must present its redacted financial institution data to the court docket till Feb. 26. While the authorized battle between the SEC and Telegram has been hitting up, some software program makers have continued to work on block explorers designed for the TON blockchain.