SEC puts a stop to Telegram’s cryptocurrency plans in the US

Telegram’s plans for its cryptocurrency and blockchain network may be in jeopardy. The US Securities and Exchange Commission has filed an emergency action and obtained a temporary restraining order against the company, which prevents it from distributing and selling its Gram tokens in the country. According to the regulators, the company sold 2.9 billion Grams at discounted prices to 171 initial purchasers worldwide, raising $1.7 billion in the process. A billion of those tokens were purchased by people in the US.

The agency says Telegram didn’t register the offering with its office, and since it sees Grams as securities, it’s accusing the company of violating the Securities Act of 1933. It’s not clear how this restraining order would affect Gram’s launch as a whole. Former SEC attorney Zachary Fallon told Bloomberg that it could also complicate the company’s ability to sell tokens in other countries. But even if it doesn’t prevent Telegram from launching outside the US, it could…