Telegram won't disclose its full bank records on ICO funds

New York Southern District Court rejected a request from the Securities and Exchange Commission (SEC) to force Telegram to disclose detailed information on how the funds raised during the ICO has been used.

The American regulator wanted to obtain a complete banking record on the use of investor funds by Telegram and TON Issuer; however, Judge P. Kevin Castel denied the request after a telephone conference with the parties held on January 6.

Notably, the SEC insisted that the distribution of digital tokens called Grams via the initial coin offering was, in fact, an unregistered offering of securities. However, the company refused to disclose the information on how the money had been spent to prove that they were appropriately used to finance the development of TON Blockchain and ensure the profitability of Grams.

While the court denied, without prejudice, SEC’s application, it has also stated that Telegram would have to prepare a  schedule for a review of the requested bank records.

In a separate development, Telegram confirmed that it would not have control over TON. Thus, when the blockchain goes live, the wallet app associated with Grams won't be integrated with Telegram's messaging app. The team said in the announcement:

“At the time of the anticipated launch of the TON Blockchain, Telegram’s TON Wallet application is expected to be made available solely on a stand-alone basis and will not be integrated with the Telegram Messenger service.”

However, in October 2019 the company suggested that the messaging app and the wallet would be bundled into a single solution. 

Telegram won‘t be able to control the blockchain and the ecosystem after it launches. Pretty much like an architect who designed a skyscraper can’t control what happens with the building after it's finished – including what gets built around, inside or on top of it.