logo
Plus   Neg
Share
Email

Telegram To Return $1.2 Bln To Investors, Pay $18.5 Mln Fine To Settle With SEC

Telegram Group Inc has agreed to return more than $1.2 billion to investors and pay an $18.5 million civil penalty to settle charges over an unregistered offering of digital tokens coin "Grams," the U.S. Securities and Exchange Commission said in a statement.

The SEC said that it obtained court approval of the settlements with Telegram, which is best known for its messaging app, and its subsidiary TON Issuer Inc.

In October 2019, the SEC filed a complaint against Telegram, alleging that the company had raised capital to finance its business by selling about 2.9 billion Grams to 171 initial purchasers worldwide.

The SEC had sought to preliminarily enjoin Telegram from delivering the Grams it sold, which the SEC alleged were securities that had been offered and sold in violation of the registration requirements of the federal securities laws.

In March 24, 2020, the U.S. District Court for the Southern District of New York issued a preliminary injunction barring the delivery of Grams and finding that the SEC had shown a substantial likelihood of proving that Telegram's sales were part of a larger scheme to unlawfully distribute the Grams to the secondary public market.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
A new class-action lawsuit filed against Facebook accuses the company's photo and video-sharing app Instagram of illegally collecting biometric data of as many as 100 million users without their consent, according to reports. The lawsuit filed in a state court in California, alleges that Instagram uses its photo-tagging technology to create a database of users' facial features. Stein Mart, Inc. has joined the ever growing list of U.S. retailers who filed for bankruptcy protection amid the ongoing coronavirus (COVID-19) pandemic. The beleaguered off-price retailer filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Middle District of Florida. United Airlines said it is adding up to 28 daily nonstop flights this winter to Florida, in its efforts to manage the impact of COVID-19. The airline is increasing services to 'destinations where customers most want to fly'. The new round trip services will connect customers in Boston, Cleveland, Indianapolis, Milwaukee, New York/LaGuardia, Pittsburgh and Columbus, Ohio to four popular Florida...
Follow RTT