The US Securities and Exchange Commission announced that its settlement with Telegram Group Inc. and its wholly owned subsidiary TON Issuer Inc. was approved in court. Telegram agreed to return over $1.2 billion to investors and to pay an $18.5 million civil penalty over its unregistered digital tokens offering Grams which violated the federal securities laws.
The SEC filed its complaint in October last year, alleging that the Telegram had sold approximately 2.9 billion Grams to 171 initial purchasers worldwide. SEC also alleges that the company sold Grams as securities in violation of the registration requirements of the federal securities laws.
In March 2020, the court issued a preliminary injunction and barred Grams and found that the SEC had shown a substantial evidence that Telegram’s sales were part of a larger scheme to unlawfully distribute the Grams to the secondary public market.