US Securities and Exchange Commission (SEC) has filed a lawsuit against Telegram on 11th October 2019 to stop their token distribution. According to SEC, Telegram has acquired $1.7bn of GRAM tokens from one of it’s Initial Coin Offering. The messaging app plans to distribute these GRAM tokens on the blockchain by October 30. However, SEC claims that Telegram has acquired these tokens by committing fraud and violating the law.
Telegram has raised the GRAM tokens with SAFT. SEC says that the ones who purchase the GRAM are about to sell it back to Americans. This is against the registration requirements of the Securities Act of 1933. SEC claims that the messaging app wants to flood the Crypto industry with GRAM Tokens.