You walk up to the gate at a zoo with a white horse on which you have painted black stripes. You insist that the horse is a zebra and therefore should be fed and displayed with the zebras. The zookeeper politely explains that your horse is not a zebra. You contend that the zookeeper is wrong, and moreover that the zookeeper’s definition of zebra is not clear — so you walk right into the zoo and move your horse into the zebra compound.
The above fintech bedtime story is essentially being read right now to Judge P. Kevin Castel of the U.S. District Court of the Southern District of New York, in the cozy historic Daniel Patrick Moynihan United States Courthouse at 500 Pearl Street in lower Manhattan of New York City.
Specifically, the U.S. Securities and Exchange Commission (SEC) obtained a temporary restraining order (TRO) against Telegram Group Inc. and its wholly-owned subsidiary TON Issuer Inc. (Telegram). Now the SEC is in the midst of explaining to Judge Castel precisely why Telegram’s digital token offering are securities, which require registration with the SEC.
‘Enforcement 40’ for 2020
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