Lawyers representing the messenger giant Telegram have stated that a review of financial records requested by the United States Securities and Exchange Commission (SEC) will take five to seven weeks to prepare. In a Jan. 9 court filing, the lawyers explained that they must analyze data protection laws in a number of foreign jurisdictions, greatly lengthening the process. The filing stated that to ensure Telegram’s compliance with all foreign data privacy laws would require an analysis of approximately 4,600 transactions, involving around 770 entities and individuals. A preliminary sample of roughly 10% of these entities implicated 12 foreign jurisdictions with …

The District Court for the Southern District of New York has denied a request by the United States’ securities regulator to make Telegram reveal its bank records. According to a Jan. 6 court order signed by Judge P. Kevin Caste, the court has denied an application by the U.S. Securities and Exchange Commission (SEC) to “compel the production of defendant’s bank records.” Telegram must prove that its bank records comply with data privacy laws The new court decision refers to a Jan. 2 application by the SEC to compel Telegram to share the details of how the firm spent $1.7 …

On Jan. 3 a “pro-Bitcoin” news outlet called “Nakamoto” launched with the stated intention of letting industry thought leaders share positive content about cryptocurrencies. According to the about section of the Nakamoto website, the platform was launched “to create a venue for quality technical, philosophical, and cultural writing that is of general interest to the crypto community as a whole, for beginners and experts alike.” The news site also mentions that “all Nakamoto contributors share one non-negotiable value: they must be pro-Bitcoin (BTC) for the long-term.” While this may be the case, many Nakamoto contributors are leading communities rivaling Bitcoin. …

Telegram’s Gram, the native cryptocurrency for the Telegram Open Network (TON), is not an investment product, the firm stressed in a fresh public statement. In a Jan. 6 blog post, Telegram emphasized that Grams should not be associated with expectations for profits based on purchase or holding of the token. Such an expectation usually defines a security. In the United States, the Securities Exchange Commission (SEC) governs the sale of securities, and their recent actions against Telegram’s offering of its Gram token assume that Grams fall within the commission’s purview. Grams are instead designed to serve as a “medium of …

Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link. Top Stories This Week SEC on “unfounded fishing expedition,” Telegram lawyers tell judge Telegram’s lawyers haven’t had a quiet start to 2020. A judge gave them less than a single business day to respond to a request from the United States Securities and Exchange Commission to hand over details of how the company spent the proceeds of its $1.7 …

Lawyers representing encrypted messaging app Telegram have requested a United States court throw out regulator demands for its bank accounts. In a letter to Judge P. Kevin Castel at the Daniel Patrick Moynihan United States Courthouse in New York on Jan. 3, Skadden, Arps, Slate, Meagher & Flom LLP described the request from the Securities and Exchange Commission (SEC) as an “unfounded fishing expedition.” Bank accounts have “no bearing” on case The SEC had demanded Telegram hand over details of how it spent the proceeds of its initial coin offering (ICO), which raised $1.7 billion. A letter to Judge Castel …

The United States Securities and Exchange Commission (SEC) has filed a court order on Jan. 2 to compel the messaging platform Telegram into releasing details of how the funds raised in its initial coin offering, or ICO, have been spent. The SEC claims that the requested records are highly relevant to its ongoing case against Telegram, alleging that the $1.7 billion raised selling Gram tokens constituted an unregistered securities sale. Request for information The filing requests both testimony and documentation from Telegram relating to the amounts, sources and use of the funds raised from investors. Notably: “Defendants are now refusing …

As one of five commissioners of the United States Securities Exchange Commission, Hester Peirce is at the forefront of securities regulation in the country today. Of interest to Cointelegraph’s readers, her positivity toward the future of cryptocurrencies has earned her the moniker “Crypto Mom.” Backdropped by recent efforts to update exemptions from security offering registration, as well as an ongoing tug-of-war with legislators as to how to handle crypto, Commissioner Peirce sat down with Cointelegraph to discuss recent changes in regulatory approach and what to look for in the next. New exemptions On Dec. 18, the SEC announced a series …

The United States Securities Exchange Commission (SEC) has announced that it is looking for ways to expand the classification of “accredited investor,” with potentially major implications for capital formation of firms hesitant to meet full public reporting requirements. The amendments and who gets to be accredited Per a Dec. 18 announcement on the SEC’s website, the regulator is looking for public commentary on amendments to its category of accredited investor. Currently, the SEC’s language defines an accredited investor as an individual with a net worth of over $1 million or an entity controlling over $5 million in assets. Other means …

Terrorist organization ISIS has turned to blockchain technology to anonymously spread videos and propaganda to thousands of people worldwide. A Vice report on Dec. 13th noted that experts who track ISIS’s activities online have found that supporters of the terror group are currently experimenting with blockchain-based messaging app, BCM. On the subject, a BCM spokesperson told Cointelegraph: “Our goal is to provide the most secure channel of communication and to safeguard the freedom of digital communication of our users, as we firmly believe that it is the cornerstone of any modern democratic society.” ISIS’s Rise To Power Through Mass Communication …

Two global financial giants, BNY Mellon and Credit Suisse, were reportedly involved in Telegram’s $1.7 billion Gram (GRAM) token sale in 2018. Telegram allegedly informed its investors that it was using BNY Mellon and Credit Suisse to move and store fiat currency raised in the GRAM sale, industry publication Coindesk reports, citing court filings released on Dec. 10. A Telegram employee reveals the details in a series of messages attached to the filings Shyam Parekh, a Telegram employee who is expected to give a deposition before the New York Southern District Court today, Dec. 10, reportedly provided details on how …

The United States Securities and Exchange Commission (SEC) asked the High Court of England and Wales to force Telegram’s former chief investment advisor John Hyman to testify in the case over the firm’s Grams tokens offering. The SEC’s request was revealed by documents filed by the regulator with the U.S. District Court for the Southern District of New York yesterday. Security or not? As Cointelegraph previously reported, the SEC is convinced that Telegram’s Grams tokens are unregistered securities. According to the regulator, Telegram claimed that its Grams Purchase Agreements but did not claim the same about the actual tokens. Furthermore, …