The ban on transferring Gram digital tokens to customers will be protested by Telegram Group Inc. The relevant appeal against the decision of the Federal Court for the Southern District of New York was filed by the company’s lawyers.
“The defendant, represented by Telegram Group Inc., hereby notifies that an appeal has been filed with the Court of Appeals for the Second Circuit of the United States to appeal the March 24, 2020 SEC decision and order to grant the SEC motion,” TASS quoted Wednesday, March 25.
The attorney representing the company in court appealed in the document that Telegram was obliged to fulfill its obligations to persons who had previously acquired Gram until April 30 this year.
On March 24, the SEC’s request to prohibit the transfer of Gram digital tokens to buyers was granted by Judge Kevin Kastel.
Earlier in February, the court extended the ban on the sale of digital tokens by the company. It is not known how long it will last.
On January 14, a federal court of the Southern District of New York State ordered Telegram Group Inc. to provide information to the U.S. Securities and Exchange Commission (SEC) on banking transactions in the sale of digital tokens.
In October, the SEC filed a lawsuit in a court in Manhattan to suspend the ICO (Initial Placement of Tokens – Ed.) of Telegram’s messenger. The SEC considered the placement of Gram tokens to be unregistered. The tokens were placed by Telegram Group Inc. and its block-platform Telegram Open Network (TON).
According to the SEC, the companies sold about 2.9 billion digital tokens to 171 buyers worldwide.
At Telegram, the commission’s charges were dismissed. According to the company, the turnover of the crypt currency is legal, as the token is “just a currency or a commodity” and not a security, i.e. the U.S. Securities Act is not violated.