News | 03.25.20
SEC Gets Win in Test of Authority to Regulate Cryptocurrency Sales
The SEC on Tuesday prevailed in a key stage of its cryptocurrency enforcement crackdown, as a federal judge issued an injunction halting Telegram from distributing its digital coins. U.S. District Judge P. Kevin Castel wrote the SEC had shown a “substantial likelihood of success” in prevailing against Telegram, which was accused of breaking investor protection laws when it sold $1.7 billion in cryptocurrency. Telegram's argument that its deal was exempt from oversight because its investors were sophisticated venture capitalists failed to win over the judge, who in his ruling wrote that the success of the deal depended upon allowing those investors to resell the digital coins to the public.
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