Connect with us


Telegram Likens SEC Request to a ‘Fishing Expedition’





For those that follow the world of blockchain and cryptocurrencies, the ongoing battle between the Securities and Exchange Commission (SEC) and Telegram may have already caught your attention.

With the looming deposition of Telegrams CEO, scheduled to take place on January 7th, the SEC has decided that now is the time to demand full transparency into the financial situation surrounding the company.

Financial Statements

In their request of the court, the SEC elaborates on their reasoning as to why full disclosure of Telegrams banking history is vital to the case.  The SEC states the following in their request.

Without fully un-redacted bank records…the SEC (and the Court) cannot fully understand (1) who made payments under which purchase agreement, (2) whether some of those payments were from entities who were acting as statutory underwriters, and (3) whether Telegram made any payments to such underwriters.”

Beyond the difficulties that may arise from a lack of transparency, the SEC took the time to close out their request by commenting on their worries surrounding the situation, by stating,

“Telegram’s refusal to produce this information to the SEC – and its suggestion that it may not have access to its own bank records because it had changed banks – is unfounded and deeply troubling.  Because the deposition of Pavel Durov is scheduled to commence next Tuesday, the SEC respectfully requests that the Court issue an order compelling Telegram to provide the discovery sought in this Motion.”

Fishing Expedition

In response to the court filing on behalf of the SEC, lawyers representing Telegram likened the move to a ‘fishing expedition’.

Simply put, the team feels as though the records have no bearing on the on-going case, and that the SEC is simply hunting for a reason/justification for their accusations surrounding Telegram’s alleged securities violations.

$1.7 Billion Questions

While every company suspected of securities based infractions must play by the same rule book, the situation with Telegram has, undoubtedly, become a point of focus for the SEC.  This was not an ICO that raised a couple hundred thousand dollars.  Telegram brought in, roughly, $1.7 billion – a staggering amount.

No doubt, this is an important case, with many eyes watching the conduct of all parties – and, most importantly, the results.


Founded in 2013, Telegram is a Dubai based company, built primarily around a messaging app.  The company hopes to develop its platform into a superior version of competitors, such as Discord, WhatsApp and others.

CEO, Pavel Durov, currently oversees company operations.


The Securities and Exchange Commission is a U.S. based regulatory body.  The SEC is tasked with enforcing regulations surrounding securities, in an effort to ensure fair and transparent markets for all participants.

Chairman, Jay Clayton, currently oversees operations at the SEC.

In Other News

This particular saga began to ramp up in October of 2019, when the SEC initially filed for a restraining order on Telegram, preventing the distribution of their tokens.  At the time, we took a brief look at what the move meant, and shed light on how the situation has developed to where it is today.

SEC Issues Emergency Action, Halting ‘Gram’ Issuance

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Advertiser Disclosure: is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio. is not a registered broker, analyst, or investment advisor.