Crypto Scandals & History on Nostr: In 2018, Telegram raised $1.7 billion from 175 accredited investors through the sale ...
In 2018, Telegram raised $1.7 billion from 175 accredited investors through the sale of its Gram token, which was intended to be used on the Telegram Open Network (TON). However, the SEC stepped in with an emergency order in October 2019, halting the distribution of the tokens. The SEC argued that the Gram tokens were investment contracts, and therefore, securities that required registration. Telegram ultimately settled with the SEC, agreeing to pay $18.5 million in penalties and return $1.2 billion to investors. The lesson from this case is clear: the SEC does not care when you sold your tokens, only whether you sold an unregistered security. This ruling has significant implications for any startup considering a token sale, as it highlights the importance of compliance with securities laws. The Telegram case serves as a cautionary tale, demonstrating the risks of ignoring regulatory requirements. As the crypto industry continues to grow, it is essential for companies to prioritize compliance and avoid the pitfalls that Telegram faced. The question remains, will startups take heed of this warning and adapt their token sale strategies to comply with securities laws?
Published at
2026-03-23 11:00:06 UTCEvent JSON
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"content": "In 2018, Telegram raised $1.7 billion from 175 accredited investors through the sale of its Gram token, which was intended to be used on the Telegram Open Network (TON). However, the SEC stepped in with an emergency order in October 2019, halting the distribution of the tokens. The SEC argued that the Gram tokens were investment contracts, and therefore, securities that required registration. Telegram ultimately settled with the SEC, agreeing to pay $18.5 million in penalties and return $1.2 billion to investors. The lesson from this case is clear: the SEC does not care when you sold your tokens, only whether you sold an unregistered security. This ruling has significant implications for any startup considering a token sale, as it highlights the importance of compliance with securities laws. The Telegram case serves as a cautionary tale, demonstrating the risks of ignoring regulatory requirements. As the crypto industry continues to grow, it is essential for companies to prioritize compliance and avoid the pitfalls that Telegram faced. The question remains, will startups take heed of this warning and adapt their token sale strategies to comply with securities laws?",
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