On Friday, the US Securities and Exchange Commission (SEC)
filed a legal complaint against Telegram and its subsidiary, Telegram Open Network (TON), over its unregistered initial coin offering (ICO).
Grams, the digital assets sold in the ICO, are a cryptocurrency which without the TON blockchain and Telegram messenger have no value, according to the defendants. However, the SEC believes the offering was an illegal sale of securities.
Telegram’s ICO is the second largest to date, behind only Block.one’s EOS token sale of 2017-18. In the case of EOS, the blockchain firm raised around $4 billion, including from consumer investors, and
settled its dispute with the SEC for $24 million two weeks ago.
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