The embattled Telegram Open Network (TON) blockchain and its native gram cryptocurrency have seen plans for launch stifled once again, with a preliminary injunction granted by Southern District of New York Judge P. Kevin Castel. The March 24 injunction sides with the U.S. Securities and Exchange Commission (SEC), concluding that the messaging giant’s plans “amount to the distribution of securities, thereby requiring compliance with section 5.”
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More Delays for TON
“The Court finds that the SEC has shown a substantial likelihood of success in proving that the Gram Purchase Agreements, Telegram’s implied undertakings, and its understandings with the Initial Purchasers … amount to the distribution of securities, thereby requiring compliance with section 5,” the March 24 injunction reads.
The ruling is the latest blow to the project, which has been struggling to prove grams are not securities under U.S. law since October,…