Telegram Hit By New SEC Evidence Showing Token Trading After ICO

The SEC has produced new evidence in its case against Telegram, which shows that the company was engaged in trading Gram tokens several months after its initial coin offering (ICO). Messaging app Telegram has been embroiled in a lawsuit with the US Securities and Exchanges Commission, which alleges that US$1.7 billion raised from the sale of Gram tokens between January and March 2018 should have been registered with the authority because the tokens constitute a security. Telegram has consistently refuted these claims and published a statement last week to address…

Telegram Will Release Bank Records to SEC in Ongoing Gram ICO Case

Telegram will release bank records that the United States Securities Exchange Commission believes will prove misconduct in the latter’s $1.7 billion offering 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 court with the bank records that the court denied the SEC in an earlier ruling that was based on privacy concerns.  Today’s ruling will allow Telegram to redact the information provided to the…

SEC Requests Telegram Banking Data as New Evidence Emerges

The Securities and Exchange Commission is once again requesting that Telegram provide bank records on its Gram initial coin offering (ICO).  The timing of the request, filed on Jan. 10, coincides with new evidence of alleged underwriters requesting commission fees for the sale of Telegram tokens. The reappearance of an earlier request The request for banking data comes four days after a similar filing was declined “without prejudice” — meaning that the SEC was free to try again. Telegram challenged the request arguing that doing so would be a violation…

SEC Produces Evidence That Telegram Kept Selling Tokens After $1.7B ICO

At least two entities invoiced Telegram for commissions from selling the company’s tokens in the summer of 2018, months after the company’s initial coin offering (ICO), newly released documents show.  The U.S. Securities and Exchange Commission (SEC), which filed the documents Friday in its ongoing court case against Telegram, said the evidence of post-ICO sales undercuts the company’s argument that the offering was exempt from registration requirements. Investment fund Da Vinci Capital and another entity called Gem Limited requested commissions of $209,783 and $1.1 million, respectively, for “subsequent sales” of…

SEC Seeks $16M From ICOBox for Unregistered Token Sale

The U.S. Securities and Exchange Commission (SEC) is seeking more than $16 million in penalties from ICOBox for selling “ICOS” tokens as unregistered securities. According to a filing in the United States District Court for the Central District of California, the SEC seeks a default judgment against Cayman Islands-based ICOBox and founder and CEO Nikolay Evdokimov, asking the judge to approve penalties as well as a lifetime ban from marketing or selling securities in the U.S. The regulator also wants Evdokimov to pay a separate civil penalty of just under…

Kik Continues Legal Battle With SEC, Requests Trial Date Definition

Kik Interactive Inc. requested the formal definition of a trial date for its lawsuit with the United States Securities and Exchange Commission (SEC), as revealed by a Jan. 9 court document. The company was charged by the SEC in June 2019 for conducting an unregistered security issuance with its $100 million initial coin offering (ICO). Kik Interactive is the Canadian developer of the Kik messenger app. It launched a successful ICO in 2017, releasing the Kin token. Though it was presented as a utility token for accessing some features of…

US SEC Seeks $16 Million Penalty from Token Sales Platform Operator

The United States Securities Exchange Commission (SEC) is seeking a default judgement against token sale platform ICOBox and its founder Nikolay Evdokimov. Documents filed with the Central District Court of California on Jan. 9 order the defendants to pay over $16 million in disgorgement to the agency within 14 days of the judgement’s entry.  In a complaint filed on Sept. 18, 2019, the SEC had sued ICOBox and Evdokimov for operating an unregistered securities offering of roughly $14.6 million worth of digital assets in 2017, and operating as an unregistered…

Kik (Again) Asks for Trial in Legal Tussle With SEC Over Token Sale

Kik is hoping to go to trial against U.S. Securities and Exchange Commission (SEC) allegations that the company conducted an unregistered securities offering with its 2017 kin token sale. The SEC filed a status update on the legal battle Thursday, providing a tentative schedule for the proceedings and detailing the parties’ plans for scheduling some remaining depositions. “Kik requests that the Court set a trial date. The SEC takes no position on whether setting a trial date would be helpful at this stage and submits that the matter can and…

US SEC Traces $3.5M Back To Alleged Fraudster Behind Fake Crypto Mine

Recent charges from the U.S. Securities and Exchange Commission (SEC) tied three parties to $3.5 million in fraudulent activities.  The SEC has pressed charges of fraud against Donald Blakstad, crypto mining outfit Energy Sources International Corporation (ESI) and vehicle part company Xact Holdings Corporation, according to a Jan. 8 document from the commission.  The document described ESI as “a purported cryptocurrency mining operation.” Millions swindled Blakstad allegedly gathered $3.54 million from at least 14 different investors via fraudulent offerings, the document detailed.  Blakstad touted possession of three businesses, vending supposed…

SEC Charges Man Behind Alleged Crypto Mining Scam

The Securities and Exchange Commission (SEC) has filed suit against Donald G. Blakstad for scamming investors partly through an allegedly fraudulent crypto mining operation. In a filing Jan 8, the SEC alleged Blackstad, 60, bilked over $3.5 million from investors of three separate firms: an oil and gas company; a vehicle parts holding company; and “Energy Sources International” (ESI), a purported cryptocurrency mining company whose Las Vegas datacenter has only one employee: Blakstad. The crypto mining operation specifically took in some $550,000 from five separate investors, all of whom were…