Kik “Void for Vagueness” Plea Against SEC Dismissed by Judge

Kik, the former messaging app now shifting its focus to cryptocurrency, has been involved in a court case with the SEC, which alleges that a 2017 ICO breached the commission’s regulations due to the fact that its coin, Kin, is actually a security. Kik Legal Team Struggle for Plausible Explanation The legal team for Kik has argued in the court of the Southern District of New York that the case against it is null and void based on the premise that the legal definition of an “investment contract” is unclear. However, the…

Telegram Denies All SEC Allegations and Requests Dismissal of Trial

Telegram has refuted allegations by the US Securities and Exchanges Commission in court, which claim that the planned Gram token from the messaging app is a security and, therefore, subject to regulations from the commission and has requested that the trial be dismissed because of this. Last month, the SEC successfully sought an injunction preventing Telegram from launching TON due to the fact that the ICO used to raise funds to develop the network was illegal. As a result of the injunction, investors in two separate ICOs were offered the chance to…

Telegram Asks Court to Dismiss SEC Lawsuit Against Gram Cryptocurrency

Encrypted messaging service Telegram has asked the New York Southern District Court to throw out accusations by United States regulators that its in-house cryptocurrency is a security. In a fresh filing on Nov. 12, Telegram’s lawyers did not mince their words as they accused the U.S. Securities and Exchange Commission (SEC) of abandoning just practice in its criticisms. Telegram: SEC “adopted ad hoc legal position” The SEC had previously argued Telegram was engaging in the sale of unregistered securities when it sold its GRAM tokens to vetted investors. Despite the…

The SEC Has Rejected Every Bitcoin ETF. This Firm Thinks It Has a Solution

One company thinks it knows how to get a bitcoin exchange-traded fund (ETF) approved by U.S. regulators. Wilshire Phoenix, a relatively young financial firm in New York, filed to launch the United States Bitcoin & Treasury Investment Trust ETF in May with NYSE Arca. At that point, a dozen bitcoin ETF proposals had already been swatted down by the U.S. Securities and Exchange Commission (SEC) – including nine in one day. But unlike other ETF applications, Wilshire Phoenix’s ETF will invest in both bitcoin and U.S. Treasury securities, commonly referred to…

US SEC Report Notes Trading Suspensions, Actions Against Crypto Firms in 2019

The United States Securities and Exchange Commission (SEC) suspended securities trading of 271 issuers this year, including some digital assets. The SEC released its annual report for the fiscal year of 2019 on Nov. 6, in which the regulator also noted that the number of suspensions is only slightly lower than last year’s 280. 31 court-ordered asset freezes in 2019 The report notes a Nevada company that falsely claimed to have partnered with an SEC-qualified custodian for its crypto transactions and to offer an SEC-regulated token offering as an example.…

Reggie Middleton Reaches $9.5 Million SEC Settlement Over ICO Fraud

The U.S. Securities and Exchange Commission (SEC) said it has reached a settlement with Reggie Middleton, organizer of the fraught $14.8 million Veritaseum (VERI) initial coin offering (ICO). In a filing with the New York Eastern District Court, dated Oct. 31 and published today, Middleton agreed to the consent decree of the final judgment, without having to admit or deny the allegations, while waiving any right to appeal. The settlement came three weeks after the court announced that it had entered into a discussion with Middleton to settle the case. The…

Telegram Releases Test Gram Wallet Despite Pending SEC Suit

Telegram has released a test version of its desktop wallet for its own digital coin, known as Grams, despite an injunction from the SEC preventing the launch of its planned blockchain, Telegram Open Network (TON). Users can download the desktop app on Windows, macOS, and Linux 64 bit from Telegram’s official website. The app greets users with the message, “Now you have a wallet only you control – directly, without middlemen or bankers.” Users can also engage in test transactions with Grams distributed by a special Telegram bot; however, it warns that these…

Telegram Releases Test Crypto Wallet Despite SEC Lawsuit

Telegram, the messaging app company turned blockchain startup, has released an early desktop wallet for its “gram” token. Now users can download the test app for MacOS, Windows and Linux 64 bit on Telegram’s official website and get their keys on the TON testnet. The wallet asks users to save 24 seed words and create a password for payments, after which the wallet is ready to receive and send grams. “Now you have a wallet only you control – directly, without middlemen or bankers,” the app says to new users. Users can…

Security Token Platform Receives Transfer Agent License From SEC

Harbor, the digital platform for alternative assets, has received a transfer agent license from the United States Securities and Exchange Commission (SEC). On Oct. 31, Harbor CEO Joshua Stein told the Block that his blockchain-enabled platform is “now the first blockchain company to receive both a transfer agent license and a broker-dealer license.” Transfer agent license will compliment broker-deal license The transfer agent license will enable Harbor to maintain financial records of security token ownership, track account balances and pay out dividends while attracting blockchain companies that are looking to…

SEC, CFTC Charge XBT Corp. With Selling Unregistered Swaps for Bitcoin

U.S. regulators filed charges against XBT Corp. Thursday, alleging the company failed to register as a futures commission merchant (FCM). In simultaneous press releases, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) alleged that XBT, otherwise known as First Global Credit, sold security-based swaps for bitcoin without registering on a national exchange. According to the charges, XBT solicited or accepted futures orders from 24 U.S. customers between March 2016 and July 2017, accepting bitcoin for margin trades. The company did not register as an FCM…