Telegram Says Review of Requested ICO Records by the US SEC will Delay
On the 9th January of 2020, the lawyers representing Telegram said in a court file that preparation of a review of financial records requested by the US SEC will take five to seven weeks. The lawyers said the analysis of data protection laws in various foreign jurisdictions is mandatory, hence remarkably lengthening the process.
This court filing noted the need to analyze about 4600 transactions of 770 entities and individuals and ensure that Telegram complies with foreign data privacy laws. An initial sample of approximately 10% of these entities implicated 12 foreign jurisdictions with which it had an experience, two of which it has yet to encounter its past work.
As per the filing, analyzing all the 770 entities could take two months, together with the consecutive revisions required for compliance with the relevant data privacy laws.
Cases of SEC Filing a Report on Telegram
A few days ago, the court denied a request by the SEC to let Telegram reveal its financial records about how it spent the money raised in its 2018 initial coin offering, ICO. However, the court ruling ordered Telegram to show its compliance with ICO spending records and all relevant data privacy laws in foreign jurisdictions. The preparation of all this information will take time.
The SEC first filed an emergency order against Telegram about three months ago, claiming that the ICO constituted an unregistered securities sale. In this case, Pavel Durov, Telegram’s founder, and two other company employees were soon to give a deposition.