Telegram ICO Claims Securities Exemption

The Telegram messaging app company has filed a Form D with the SEC noticing the advertised private placement of its Initial Coin Offering raised $850 Million from only 81 investors.

The offering is not expected to run for more than 12 months. The Form declines to disclose its revenues and says that its first sale was January 29, 2018.

The securities sold (note that it agrees that its tokens are securities) are called “Purchase Agreements for Cryptocurrency.”

No sales commissions were paid.

The company says that the proceeds from the ICO will be used “for the development of the TON Blockchain, the development and maintenance of Telegram Messenger and the other purposes described in the offering materials.”

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
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