Verily to say that SEC wants to bring an end to the launch of Telegram’s ambitious blockchain project or TON and the issuance of TON’s tokens known as grams, which is considered as unregistered securities. That is why the agency asked the High Court of England and Wales to obtain the testimony and documents from John Hyman, who was one of Morgan Stanley’s most senior bankers in London.
Though Hyman is busy in raising funds for TON, the SEC is seeking his testimony. Reportedly Hyman runs the distribution of Grams and related activities.
Eying on Grey Market
The filling by SEC is hinting some fundraising tactics used meanwhile Telegram’s unprecedented $1.7 billion token pre-sale. Hyman said in email that Telegram won’t do any form of direct public offering because of regulatory issue. Only while network is working, the public will be able to buy grams.
Another plan of Hyman got shelved because of some points that in writing to Google Ventures Blake Byers in May 201, Hyman said there would be a third private round in addition to the two completed in February and March. The advisor has been keeping an eye on the grey secondary market for grams according to the filling. But according to collected info from different sources, Telegram’s advisor would regularly ask for updates on the secondary market of grams.
Mailing between Involves
A meeting among Pavel Durov, Telegram CEO, Hyman and the investment firm Kleiner Perkins’ partner Mamoon Hamid in London was held. The news came to us through an email between Telegram CEO and some TON investors. In this meeting, Durov made a question to Hamid about whether he has interest in investing in blockchain tech and said that he had to annihilate his U.S. trip as the gram presale ‘’reached 2x subscription too soon. In reply Hamid paid a positive opinion. Other than that, Durov introduced Hyman to other potential investors as Telegram’s chief investment advisor.
The SEC dispatched a letter of request to Queen’s Bench Division, Senior Master of the High Court, of England and Wales requesting the deposition of Hyman according to the filling. The filling also says Hyman will not meet the SEC willingly and because of that reason the court should seek the help of the overseas judicial system. But through a contact with Greg Campbell a piece of news came that Hyman agreed to appear voluntarily for a deposition.
But SEC involved British Court after Mr. Campbell has refused several phone calls and emails to talk about Mr. Hyman’s deposition. The SEC is also seeking to obtain his written communications with Telegram’s leadership and investors. According to information Hyman left his job at Telegram and is now working at Gram Vault.
Reason of Grams being unregistered
The SEC thinks grams to be unregistered because the offering as exempt under Regulation D. the authentic explanation about gram token wasn’t come from Telegram. The SEC said Telegram allowed the investors to buy grams with a goal to later resell them with profit on a broad secondary market and did not take steps against that. The SEC said it insisting that grams were securities by design. Because of Telegram’s marketing materials, the investors acquired substantial quantities of grams that would far exceed any purported use of the grams in whatever ecosystem Telegram promised in the future. The CEO of Telegram previously ordered the depositions. So postpone of the launch of TON blockchain had to be done because of the legal steps by SEC.