SEC vs Telegram Case: Return $1.2 billion to investors over failed TON digital token
- Judge Kevin Castel signed the final judgment in the SEC v. Telegram case on June 26th.
- Telegram will have to pay an amount of $18.5 million as a penalty to the U.S. Securities and Exchange Commission (SEC).
- $1.2 billion also to be returned by Telegram to the investors who had put into the TON digital token.
Judge Kevin Castel signed the final judgment in the SEC v. Telegram case on June 26th where Telegram agrees to pay back $1.2 billion to the investors over its failed ICO.
Also, Telegram will have to pay $18.5 million to SEC and notify if it plans to launch any digital currencies in the next three years beginning on the date of final judgement.
They also have to give 45 days prior notice to SEC if it directly or indirectly involves in the issuance of “cryptocurrencies,” “digital coins,” “digital tokens” or any similar digital asset issued over distributed ledger technology.
Kristina Littman, chief of the SEC Enforcement Division’s Cyber Unit said in a statement that, “New and innovative businesses are welcome to participate in our capital markets but they cannot do so in violation of the registration requirements of the federal securities laws.”
SEC institute legal proceedings against Telegram in October 2019 after the company raised $1.7 billion to fund its TON blockchain project.
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