U.S. District Court agrees with SEC argument, issues preliminary injunction to Telegram

Magistrate P. Kevin Castel of the Southern District of New York, U.S.A., has approved a request from the Securities and Exchange Commission (SEC) that Telegram cannot issue its cryptocurrency Gram next month as planned. In a preliminary injunction on March 24, the judge said that the SEC had proved that Telegram had sold unregistered securities, and that the agency's claims made sense. "Given the economic realities of the Howie test, the court held that the resale of Gram to the secondary public market without a necessary registration statement would be an integral part of the sale of securities."