6 votes

SEC files emergency action and obtains a temporary restraining order to halt Telegram's cryptocurrency token offering

1 comment

  1. RapidEyeMovement
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    Woah, this is major and and has broad implications for the crypto market and any new projects going forward. Can't believe they released this on a Friday. They are framing this as a lack of...

    Woah, this is major and and has broad implications for the crypto market and any new projects going forward. Can't believe they released this on a Friday.

    “We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token,” Steven Peikin, Co-Director of the SEC’s Division of Enforcement. “Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”

    They are framing this as a lack of information on business operations, financial condition, risk factors, and management that the securities laws require. This is all information that is provided in an. S-1. The S-1 form is what really allowed everyone to find out how bad of a business the WeWork really was, some calling it Death by S-1.

    This will have an interesting chilling effect, I wonder how this will play out.

    1 vote