Telegram Won’t Have To Show The SEC Its Bank Accounts, Court Rules
Telegram appears to have caught a break with the recent case filed by the U.S. Securities and Exchange Commission (SEC). The company recently refused to share its financial records with the market regulator, and now the New York court has ruled against SEC’s demand.
SEC Request Denied
This year started on the wrong foot for Telegram, as the SEC recently requested the firm’s financial records to explain what it did with the $1.7 billion raised for the TON blockchain. As Cryptopotato reported, though, Telegram refused to share its private data, and a few days later, company lawyers filed an official motion to the court to deny the request.
Yesterday, the U.S. District Court of Southern District Of New York issued an order to dismiss SEC’s demand. It reads that all parties had a telephone conference regarding the manner, and ultimately the Court denied “without prejudice, the plaintiff’s application to compel the production of the defendant’s bank records.”
Despite this, though, Telegram would still need to prove that the banking records comply with existing foreign laws:
“By January 9, 2020, the defendant shall set forth in a declaration a proposed schedule for a review of the requested bank records to ensure that production of such records complies with foreign data privacy laws.”
Telegram’s Response
The company decided to published a response regarding the emerging rumors surrounding its TON blockchain and the future Grams cryptocurrency.
One of the main topics brought up in the statement was explicitly targeting laws and regulations. It says that the company is working to ensure that all requirements are met before the actual product sees the light of day.
Additionally, the document also explains the application of the TON wallet, which should be “made available solely on a stand-alone basis.” More importantly, it will not be integrated with the popular Telegram messenger service. However, the company doesn’t rule it out entirely, saying that the integration could happen in the future “to the extent permitted under applicable laws and governmental authorities.”
The statement also contains a few other clarifications, including the decentralized nature of the future product. It also confirms that the GRAM token is currently being tested and is not available for purchase yet, so the cryptocurrency community should steer clear from any possible scams containing a similar name.
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