Review of Requested Records Will Take Time, Say Lawyers Representing Telegram
A court filing on January 9 by the lawyers representing Telegram says the preparation of a review of financial records requested by the U.S. SEC will take five to seven weeks.
According to the lawyers’ explanation, the analysis of data protection laws in numerous foreign jurisdictions is mandatory, thereby remarkably lengthening the process. The filing noted the need to analyze about 4,600 transactions of 770 entities and individuals towards ensuring that Telegram complies with all foreign data privacy laws.
An initial sample of approximately 10 percent of these entities implicated 12 foreign jurisdictions with which it had past experience, two of which it has yet to encounter its past work.
It could take about two months to analyze all 770 entities, together with the consecutive revisions required for compliance with the relevant data privacy laws, says the filing.
According to a report a few days ago, the court denied a request by the SEC to let Telegram reveal its financial records regarding the way it spent the money raised in its 2018 initial coin offering (ICO).
Nevertheless, the court ruling said Telegram must show compliance with these records with all relevant data privacy laws in foreign jurisdictions. That is, the preparation of such information requires much time.
Three months ago, the SEC first filed an emergency order against Telegram with the claim that the ICO constituted an unregistered securities sale.
The founder of Telegram, Pavel Durov, and two employees of the company were expected to give a deposition soon.
Featured image courtesy of Shutterstock. Source: Cryptopress.