The SEC vs Telegram impacts everyone in crypto

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The SEC vs Telegram impacts everyone in crypto
A federal district court hearing tomorrow will help clarify whether Telegra
What’s being argued

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In Brief Telegram will face off the SEC on Wednesday, which alleges that the $1.7 billion it raised from investors for TON was an unregistered securities offering, and thus illegal
In a New York courtroom Wednesday, Telegram, the operator of the eponymous 300 million-strong messenger app, will face the SEC to defend its claim that its $1.7 billion raise for its upcoming blockchain network, the Telegram Open Network, didn’t break securities law.
If the court ultimately rules in the SEC’s favor, Telegram might have to pay a hefty fine—and even have to pay back the $1.7 billion to investors.
A court ruling could set a legal precedent for how the SEC carries out crackdowns on unregistered security sales.
Crypto projects Filecoin, Dfinity, and Polkadot all raised millions through SAFTs, and Kik, which also has its own messenger app, is currently battling a similar issue with the SEC for its token, Kin. A ruling in favor of the SEC could make it easier for the agency to chase after such companies, impose penalties, or force them to give money back to investors.
The SEC has, so far, settled with several companies it’s chased for unregistered securities sales (the most high-profile case concluded in October, when the SEC settled with Block.one, which raised over $4 billion in its ICO for EOS in 2017).
Other ICOs flew “below the radar,” but the case against Telegram, whose messenger app has grown to near 300 million users since its launch in 2013, will have a greater impact, Roni Berkowitz, a partner at Porat, a Tel-Aviv based law firm, told Decrypt.
No matter which way the court rules, Hinkes believes it’s likely the case will be appealed, and the result of an appeal “may finally create some binding law.” That would create “certainty in the market,” and “clarity for issuers as to what the law does and does not require of them,” he said

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