The new year has gotten off to a typically volatile start in the world of cryptocurrencies, and Telegram has found itself in tons of trouble regarding the company’s ongoing legal drama with the United States Securities and Exchange Commission (SEC).
Telegram, founded by the Durov brothers Nikolai and Pavel, has undergone a robust expansion that has seen the company launch the Telegram Open Network (TON).
However, despite an earlier court decision allowing Telegram to continue its coin offering in light of a claim from the SEC to look at the banking records of the business, the courts have now ruled that Telegram must comply with the request.
Telegram has since agreed to cooperate and plans to release the relevant records, possibly in redacted form. They have been given until the end of February to comply.
The legal showdown between TON and the SEC makes for compelling reading. But just how did we get here? And what does the case mean for the cryptocurrency industry as a whole? Let’s take a deeper look at how the first big crypto battle of the 21st century is likely to pan out:
How did we get here?
Firstly, let’s take a moment to consider how we got into the predicament. The case escalated quickly in a landscape that’s still developing in a legal sense. Fundamentally, the battle between Telegram and its regulators is unprecedented – meaning that the outcome will set a new industry standard.
2019 was a tumultuous year for cryptocurrencies. After a slow opening six months, the markets went into a frenzy upon the announcement of Facebook’s stablecoin project, Libra. The excitement around Libra caused Bitcoin’s price to peak at nearly $13,000 – igniting memories of its amazing surge in late 2017.
Following on from the announcement of Libra, China’s President, Xi Jinping declared that the nation would turn its focus towards the development of blockchain technology.
The summer of 2019 saw widespread excitement for what…