16 Dec 2019
The case involving U.S. Securities and Exchange Commission (SEC) and Telegram is gradually hitting up as SEC seeks for testimonies from Telegram’s investment adviser. A court ruled that Telegram’s CEO Pavel Durov, as well as two other executives, should make their statement in the case.
Earlier in the year, the SEC filed a case against Telegram for its controversial IOC. SEC insisted that the company’s ICO offering was against the SEC’s rules and regulations concerning the issuance of ICOs by companies.
In another development, the SEC had also asked Hyman to provide documents and information that could be used as evidence against Telegram’s unlawful ICO. The commission wants the former Telegram’s executive to submit the documents before 9th February, when the hearing of the case would resume. If the U.K. authorities approve of the request, Hyman will go to the court location agreed by both parties to testify.
From the report gathered, Hyman had voluntarily agreed to testify when the court in the UK approached his counsel. However, there has been an unsuccessful follow-up request to reach him since then. The court and SEC do not know whether he has changed his mind regarding his statement in court.
Earlier documents revealed Hypan’s stance on the situation, as it was revealed that several letters by Telegram included his name as one of the testifiers. SEC was able to get some copies of those letters, which prompted the commission’s decision to ask him to testify against Telegram. SEC is not interested in pursuing any case against Hypman, since it wants to proceed with the case against Telegram. But it still remains unclear whether Hypman will turn against his former employer to testify against them.
When Hypman was still the Chief investment adviser of Telegram, SEC said that he was in touch with Grams investors. SEC added that Gram Vault is his current employer. Gram Vault is an organization that provides staking, trading, and safekeeping services to investors within the Telegram blockchain.
From the evidence derived from this witness, it’s very obvious that Telegram is guilty of the charges for violating SEC’s rules and regulations, the commission said. SEC argued that the actions of Telegram regarding its ICO go contrary to the provisions of the United States SEC over ICO investments in the country.
SEC’s resolve to protect the interest of U.S investors is still strong. That’s why the commission is pursuing the Telegram ICO case relentlessly.
But the position or disposition of Hyman in the case does not necessarily mean he is a defendant in the case. SEC says he is only wanted as a witness since he knows a lot about the case on the ground. The SEC does not intend to pursue any case against Hypman because the commission’s main concern is the interest of U.S. investors. By pursuing the case against Telegram, it intends to set the records straight that its extensive regulation on ICO related deals will continue, SEC reiterated. Recently, SEC had been clamping down on digital asset issuers in a bid so sensitize the market and protect US investors. As it stands, it appears the case against Telegram will not be the last as the commission continues with its scrutinizing role.
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