SEC Calls Out Status of Telegram's TON, Doubting Development

In the latest from U.S. Security and Exchange Commission's ongoing lawsuit against Telegram for its offering of Gram tokens, the commission bashes the messaging service's blockchain and related token.

In a lengthy filing with the court of the Southern District of New York the SEC responded to Telegram's earlier motion for summary judgment.

In it, the SEC disparaged the Telegram Open Network - Telegram's blockchain - as well as the operation's Gram token.

Telegram's TroublesTelegram hosted its initial coin offering in 2018, running two private investment stages that banked the messaging company $1.7 billion in total funds.

In 2019, the SEC began an investigation into Telegraph's crypto endeavors, claiming the entity did not register with the commission for the ICO and its Gram tokens.

The SEC's concernsAccording to the recent court filing, Telegram stated use cases for GRM tokens within certain applications.

Telegram provided a chart listing GRM uses, applications, etc.

"Telegram's chart does not distinguish which potential applications have been developed, which are in the process of development, and which are theoretical," the SEC's filing detailed.

"There is no direct, reliable evidence in the record regarding the nature or state of any of the potential applications listed in Telegram's chart."

The court document lists numerous other question marks relating to GRM token usage, as well as Telegram's entire offering, showing that the SEC has no shortage of concerns on the matter, with no resolution currently at hand.