US SEC stalls Telegram's $1.7 billion digital token offering


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US SEC stalls Telegram's $1.7 billion digital token offering

Late on Friday, the 11th of October 2019, US financial regulators had issued a public statement saying that it had stalled a $1.7 billion worth of digital coin offering or ICO (Initial Coin Offering), a term widely used by the Cryptocurrency issuers, by a cloud-based instant messaging service, Telegram Messenger LLP., alongside its TON Issuer subsidiary, which casted further glooms on digital coins amid growing grudges over Facebook Inc.'

s digital currency Libra among financial policymakers across the globe. Aside from that, latest decision of US Securities and Exchange Commission (SEC) came forth a day after a US Congressional House Panel had asked Facebook Inc.

CEO Mark Zuckerberg to testify about the tech titan's plan on its digital currency, Libra, before the US House Financial Service Committee amid widespread criticism, while major online financial providers likes of PayPal Inc., credit card issuers such as Master Card and Visa Inc., alongside a many more had left the Geneva-based Libra Association.

Amid such a tempestuous outlook on digital coins or cryptocurrencies across the globe, latest US SEC ban on Telegram's initial coin offering worth of $1.7 billion had remarked the latest crack down on digital currency industry, as a co-director of the SEC's Division of Enforcement, Stephanie Avakian, the co-director of the SEC's Division of Enforcement, said in a statement on Friday (October 12th), "Our emergency action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold. "