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Rightholders complained to the SEC about Telegram’s plans to launch a cryptocurrency

The Internet Copyright Protection Association (AZAPI) and eset internet security license key 2022 appealed to the US Securities Commission (SEC) with a statement on Telegram due to fears that if the Gram cryptocurrency is launched, the TON platform will become the largest pirate platform.

As the general director of AZAPI Maksim Ryabyko told Interfax, the organization asks the SEC “to analyze the risks of investors associated with legalization and laundering of proceeds from crime.” “Because if the Gram cryptocurrency is introduced on the platform, then it may be involved in the sale and monetization of illegal content. Therefore, all income indirectly associated with the circulation of this cryptocurrency may entail risks, including for investors,” said Ryabyko.

He expressed the hope that the SEC will pay attention to the appeal of AZAPI and, as part of the investigation, will work out this issue with the owners of the platform. “We think that, most likely, these questions will be asked to the management of Telegram as part of the SEC lawsuit,” Ryabyko said.

According to AZAPI, the solution to the issue may be the introduction of digital prints, given that Telegram will never go to disclose user data to which the copyright holder could make claims. For example, YouTube now works according to this scheme, where the content is first checked against the database of copyright holders, and only after that it is published on the service.

“If Telegram does not implement this, accordingly, there are risks that TON will become the largest pirate platform with anonymous monetization, and these are risks, in fact, for everyone, including investors,” Ryabyko said.

AZAPI represents the interests of the largest copyright holders, book publishers in Russia, including the publishing group “Eksmo-AST”, publishing houses “Alpina Publisher”, “Mann, Ivanov and Ferber”, “Azbuka-Atticus”, “Soyuz”, “Audiobook”, “Ardis “,” Vimbo “.

On October 18, it became known that the Telegram Group was forced to postpone the launch of its cryptocurrency due to a temporary ban on the sale of tokens in the United States, introduced after a lawsuit was filed by the US Securities and Exchange Commission (SEC).

The company raised $ 1.7 billion as part of an initial token offering (ICO) in 2018 to create the Gram cryptocurrency and the corresponding blockchain infrastructure. Telegram promised investors to provide them with access to tokens no later than October 31, but the SEC demanded in court to suspend the ICO, which it considered illegal.

In a letter to investors, leaked to the media, it is noted that the company is working to address the concerns of the SEC.

On October 13, Stephanie Avagyan, co-director of the SEC’s Compliance Department, said the regulator’s lawsuit was “aimed at preventing Telegram from flooding US markets with digital tokens that we believe were placed illegally.” According to her, the defendants did not disclose to investors information about Telegram’s business, financial position, risk factors of the company, as required by the legislation on securities.

The SEC has repeatedly stated that issuers have no right to circumvent the requirements of the securities law by labeling their product as “cryptocurrency” or “digital token”. Telegram wanted the benefits of a public offering without complying with disclosure requirements designed to protect investors, the SEC said.

The lawsuit filed by the SEC, in addition to the suspension of the ICO, involves penalties against Telegram.