The Southern District Court of New York has again extended the ban on the distribution of Gram tokens among investors. The judge emphasized that the decision will be made before April 30th – the date when Telegram must fulfill its obligations to investors
During the hearing, representatives of the US Securities and Exchange Commission (SEC) reiterated that the Gram token is a security, and also stated that the Telegram “lost control” of the private placement when the rights to acquire Grams being resold by the initial purchasers.
However, Telegram counsels continue to insist that Gram is a cryptocurrency. They also emphasized that the company was not going to control the Telegram Open Network (TON) in the future.
In general, the decision will depend on how the court relates the Gram to the Howey Test, which is used to recognize an asset as a security.
Full article on the Telegram hearing can be found on our partner Dilendorf & Khurdayan website