Telegram will release bank records that the U.s. Securities Exchange Committee believes will prove misconduct in the latter's $i.7 billion offer of Gram tokens.

International privacy laws and the new information

Per a Jan. 13 filing with the court of the Southern District of New York (SDNY), Telegram will have until Feb. 26 to provide the courtroom with the depository financial institution records that the court denied the SEC in an earlier ruling that was based on privacy concerns.

Today'southward ruling will allow Telegram to redact the information provided to the court in accordance with strange privacy regulations. According to a letter to the court from the attorneys for the defense, Telegram — a company founded in Russia by Pavel and Nikolai Durov and currently based in Berlin — will provide the SEC with these banking company records in full past Jan. 15, simply redacting them before submitting them to the public record.

The fact that Telegram'south attorneys have agreed to provide the SEC with full banking company records, while the public will have admission to redacted versions means that all eyes will exist on the SEC'south next move equally a bellwether of what they do or do not find in the new documents. Philip Moustakis, an chaser with Seward and Kissel and formerly senior counsel at the SEC, told Cointelegraph that the SEC will exist on alarm for evidence of Telegram'south "Failing to practice reasonable care to ensure that the purchasers were not acting as underwriters."

The story of the bank records

As Cointelegraph reported, the SDNY denied the SEC's original asking for data earlier in January but did so "without prejudice," leaving the subject field open up to further word.

On Jan. 10, the SEC produced invoices from declared underwriters to Telegram's sale of Gram tokens that the SEC believes demonstrate offering of Gram tokens outside of their approved timeline.

SEC v. Telegram in brief

The saga of the U.S. regulator and the messenger service began in earnest on Oct. 11, when the SEC filed an emergency action demanding a cease-and-desist in Telegram'due south offering. The SEC called the sale of Gram tokens an unregistered securities offering, while Telegram argued that it qualified under Regulation D exemptions to the requirement to register equally such an offering.

The SEC has been examining opportunities to adapt its Reg. D exemptions, which are dependent on making offerings to "accredited investors" lonely, who by the logic of U.S. securities law does non crave the same degree of regulatory protection as main-street investors. Despite this ongoing afterthought, the commission has persisted in identifying Telegram's offering as a security offer, meaning that the instance will proceed.