According to the reports from US Securities and Exchange Commission (SEC) Telegram has agreed to return $1.2 billion (GBP 972.84 million) to investors and it will pay the $18.5 million civil penalties for resolving some of the charges over an unregistered digital token coin offering.
The regulator in October halted a $1.7 billion digital token offering by the firm, which is best known for its messaging app, saying Telegram had raised capital to finance its business by selling 2.9 billion “Grams” to global investors. The SEC said in a statement on Friday it had obtained court approval of the settlements with Telegram and its TON Issuer subsidiary. It has been also seen that Telegram has never admitted or denied the SEC’s allegations.
The agency has been seeking to crack down on the fledgling cryptocurrency industry. SEC has taken the position that initial coin offerings are securities offerings and therefore subject to SEC offering rules, which require companies to file registration and disclosure documents.
“New and innovative businesses are welcome to participate in our capital markets, but they cannot do so in violation of the registration requirements of the federal securities laws,” said Kristina Littman, chief of the SEC Enforcement Division’s cyber unit.