In Legal Battle With US SEC, Telegram Sees New Support From Trade Association

The Blockchain Association, a major United States-based trade association in the crypto sphere, has filed a new brief in support of Telegram amid the firm’s continuing legal battle with the Securities and Exchange Commision (SEC). The amicus brief and the SEC’s lack of clarity The April 3 brief takes the SEC to task for backtracking on its own guidance for legally distributing digital assets.  Referring to the inconsistency that issuers of digital assets must cope with when dealing with the SEC, the brief says that “No settled precedent or agency…

Govt. Pauses SEC Suit Against $30 Mln ICO Amid Parallel Investigation Concerns

Prosecutors have paused a United States Securities and Exchange Commission (SEC) lawsuit against the alleged operators of a $30 million fraudulent ICO amid concerns that proceedings may impact the integrity of a parallel investigation into the defendants. The United States attorney’s office for New Jersey intervened in the case on April 2. SEC suit paused amid integrity concerns over the parallel investigation The SEC action against defendants Boaz Manor, Edith Pardo, and the associated companies CG Blockchain Inc and BCT Inc has been halted to maintain the integrity of parallel…

Philippine SEC Warns of International Ponzi Offering 300% Daily Returns

The Philippines Securities and Exchange Commission (SEC) warned of a crypto Ponzi scheme targeting Filipino, Australian, and European investors on March 30. The scheme, Bitcoin Revolution, comprises a classic Ponzi in which investors are offered exorbitant compounding daily returns on deposited funds. Bitcoin Revolution claims to have software that produces trades with a success rate of between 88% and 95% — offering a path to seven-figure status over just 61 days. From an initial deposit of just $250, the scammer claims that investors can earn 300% per day or 9,000%…

SEC Postpones Decision on Overstock-Affiliated Security Token Exchange

The United States Securities and Exchange Commission is seeking more feedback and more time before it decides whether to approve the launch of the Boston Security Token Exchange (BSTX). In a letter published on April 1, the regulator postponed the current April 2 deadline in light of responses to a recent proposed rule change to BSTX’s original filing. The proposed exchange BSTX is a project for a regulated security token exchange platform that would be jointly owned by Box Digital Markets and Overstock’s blockchain arm tZERO. As the SEC summarizes…

SEC Claims Telegram Injunction Applies to ‘Any Person or Entity’

The United States Securities and Exchange Commission has opposed Telegram’s request for clarity regarding the geographic scope of a court injunction barring the company from distributing its Gram (GRAM) tokens. In a letter to Judge Castel dated March 30, the SEC asserts that the injunction “unambiguously, and properly, applies to Telegram’s delivery of Grams to ‘any person or entity’ […] and requires no clarification.” The Gram tokens correspond to the firm’s $1.7 billion initial coin offering that raised money to launch the Telegram Open Network — or TON — in…

Riot Blockchain Cites COVID-19 Disruption Risks on SEC Form 10-K

Nasdaq-listed cryptocurrency mining firm, Riot Blockchain, filed its Form 10-K annual report to the United States Securities and Exchange Commission (SEC), March 25. Among a long list of other potential risk factors to the business, the report assesses the potential disruptions due to the COVID-19 pandemic. COVID-19 will affect cryptocurrency mining business As part of the Form 10-K a company must include information about any significant risks to its business. Riot further subdivides these risks into several sections, although interestingly lists the risks from COVID-19 as a cryptocurrency-related risk, rather…

Telegram Is Losing to the US SEC, TON Community Can Launch Network Regardless

As Telegram’s legal battle with the United States Securities and Exchange Commission continues to unfold, the U.S. authorities have convinced the judge to bar the company from issuing Gram tokens — at least in the near future. On March 24, the U.S. District Court for the Southern District of New York judge said that the SEC “has shown a substantial likelihood of success” in proving that Telegram, the firm behind the eponymous open-source encrypted messenger, distributed unregistered securities.” As a result, the federal judge granted a preliminary injunction against the…

Court Sides With SEC, Grants Injunction Against Issuing GRAMs

A United States District Court has granted an injunction against Telegram, preventing the company from issuing its GRAM tokens at the present time. Court says that GRAMS are securities under Howey test Per a March 24 filing granting the Securities and Exchange Commission’s request for a preliminary injunction, the Court wrote that: “The Court finds that the SEC has shown a substantial likelihood of success in proving that  the contracts and understandings at issue, including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion, are…

SEC Seeks Early Judgement in Lawsuit Over Kik’s $100M ICO

The United States Securities and Exchange Commission (SEC) has requested an early summary judgment in its lawsuit against Kik over the messaging company’s $100 million KIN initial coin offering (ICO) during 2017. The SEC first brought its case against Kik in June 2019. The commission argued that the company’s ICO comprised a clear issuance of securities. While Kik has sought to claim that KIN comprises a currency and not a security, the SEC claims to have “undisputed evidence” to the contrary. The SEC states that: “Kik’s 2017 offer and sale…

US SEC Freezes Assets of Alleged Crypto Scam Backed by a Former State Senator

The United States Securities and Exchange Commission (SEC) has frozen the assets of Meta 1 Coin, an alleged crypto scam backed by a former state senator that promised investors returns of up to 224,923% without ever having any actual tokens.  Per a March 20 announcement from the SEC, the regulator initially froze Meta 1’s assets on March 16 and is charging the firm’s operators with fraud. Currently, the SEC seems to be pursuing fines and disgorgement rather than jailtime for those involved. Claims of art and gold assets Meta 1…