Telegram Founder Durov Should Testify in SEC Case Over Gram Token: Judge

Telegram’s founder and CEO Pavel Durov, as well as two other employees, should give testimony in the SEC vs. Telegram case, a judge has ordered.

According to a document signed by District Judge P. Kevin Castel at the New York Southern District Court on Monday, Durov’s deposition should take place on Jan. 7 or 8, 2020, at a location “agreed upon by the parties.” That would be a little more than a month before Telegram is scheduled to meet the SEC in court to dispute the legal status of the gram token, which the SEC considers an unregistered security.

Telegram vice president Ilya Perekopsky, who was reportedly responsible for communications with investors during Telegram’s $1.7 billion token pre-sales last year, should also be questioned on Dec. 16 in London, the order states.

The third person listed to provide pre-trial testimony is Shyam Parekh, a Telegram employee who’s name was on Telegram’s letters to investors that were leaked after the SEC sued the company, one of the investors told CoinDesk. Parekh’s deposition will be held on Dec. 10, also in London.

The SEC sued Telegram in October, demanding that the messaging app company’s blockchain project TON be halted and the tokens allocated to the project’s investors not be distributed. The regulator said that Telegram woul flood the U.S. market with unregistered securities and make them available to retail investors.

Telegram disagreed with the SEC, arguing that it properly registered the token sale under Regulation D, and the token itself, once issued, “will merely be a currency or commodity,” not a security. It has recently asked the court to drop the SEC action, rejecting all the allegations by the agency.

However, the company agreed to postpone the project’s launch, previously scheduled for the end of October, until April, 2020, so the SEC case can be resolved. TON investors approved the delay, refusing an offer of a partial refund.

The project has been still been progressing in the…

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