Court bans Telegram token issuance, alleges token issuance violates U.S. securities laws

In a 2018 case in which Telegram raised $ 1.7 billion in digital currency issuance, a federal judge in New York issued a preliminary injunction ruling that the issue of “GRAM” tokens violated U.S. securities laws. The court specifically ruled that “Given the economic realities in the Howey test, the court held that reselling Grams to the secondary market in the context of the fundraising plan was also part of a violation of US securities law.” After conducting a Howey test with the situation, the court further found that “rational buyers are reluctant to pay $ 1.7 billion for Grams, just to store or transfer value. To this end, Telegram has launched a program that maximizes the willingness of initial buyers. This program Created a structure that maximizes the value of these buyers when they resell on the open market. “