The Southern District of New York State Federal Court dismissed Telegram Group Inc’s request for clarification of a temporary ban on the transfer of Gram digital tokens to customers. The decision was received on Wednesday in the electronic database of the court.
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Judge Kevin Castel, who is considering a lawsuit by the US Securities and Exchange Commission against Telegram, last week granted the request of this regulatory body. Castel indefinitely banned the company from transferring tokens to those who purchased them in 2018 following the initial offering. Telegram defense on March 27 asked the court to provide clarification on the scope of the ban. The company hoped to get an answer to the question, does the resolution only apply to purchase agreements with investors in the United States.
The Commission opposed this. As it noted, although the Telegram’s request is in the form of a request to clarify the decision, it’s actually a veiled request for a review of the decision. The regulator asked the court to refuse Telegram in an attempt to narrow the scope of the temporary ban. Castel partially agreed with the arguments of the commission. It is said in the decision, that Telegram denied the application.
The judge noted that the lawyers of the company a few months ago were acquainted with the provisions of a possible ban on the transfer of tokens, but did not consider it necessary to ask for clarification or to challenge any points. According to Castel, Telegram cannot guarantee that Gram buyers outside the United States will not sell tokens to American investors.
As lawyer Alexander Draylivsky, who represents Telegram, previously stressed in the United States, court orders in the past argue that a court ban cannot apply to transactions made outside the country and not with American citizens.