Messaging app giant Telegram refuses back down against the Securities and Exchange Commission (SEC).
According to CoinDesk, the Dubai-based company refuted all allegations the SEC made against them and asked the Southern District court of New York to drop the case.
“[The SEC’s] claims are without merit as Telegram’s private placement to highly sophisticated, accredited investors was conducted pursuant to valid exemptions to registration under the federal securities laws and Grams will not be securities when they are created at the time of launch of the TON Blockchain,” said Telegram in the latest filing.
In the 35-page legal response, Telegram argued that the SEC did not provide “necessary clarity” and notice which eventually led to “arbitrary enforcement.” The commission, the company said, also failed to provide guidance while it was expanding funds to build the TON Blockchain.
Telegram thus accused the SEC of being “unconstitutionally vague,” citing the due process clause of the United States constitution which requires that “laws be crafted with sufficient clarity to ‘give the person of ordinary intelligence a reasonable opportunity to know what is prohibited’ and to ‘provide explicit standards for those who apply them.’”
Given that, Telegram’s counsel says that the SEC’s case is void for vagueness and lack of notice.
They also argued that the SEC had no authority over Telegram and its foreign purchasers, and that the company does not fall under the jurisdiction of the SEC.
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