The SEC filed a temporary restraining order against two entities of Telegram's cryptocurrency ICO

The US Securities and Exchange Commission (SEC) today announced that it has filed an "emergency action and a temporary restraining order" against two offshore entities of Telegram's TON ICO. Stephanie Avakian, co-director of the SEC's law enforcement department, said the emergency action was to prevent Telegram from flooding the US market with a large number of digital tokens, which the SEC said were illegally sold. The SEC alleges that the defendant failed to provide investors with information on the management of Grams and Telegram business operations, financial conditions, risk factors and securities law requirements. The SEC said it has repeatedly reminded issuers not to circumvent federal securities laws by simply affixing cryptocurrencies or digital tokens to their products. Telegram attempts to benefit from public offerings without complying with long-term disclosure responsibilities designed to protect the investing public.