Judge Preserves SEC Motion to Strike Telegram’s Void for Vagueness Defense
Aaron Wood's original article for cointelegraph.com reduced by 58%
A United States federal judge has preserved the Securities and Exchange Commission's move to strike Telegram's "Void for vagueness/lack of notice" defense. According to a letter dated Nov. 25, the SEC moved to strike Telegram's proposed defense as being insufficient under federal law.
In early October, the SEC claimed that Telegram's $1.7 billion Gram token sale was illegal under U.S. securities laws. Motion to strike by the SECIn seeking to strike Telegram's void for vagueness defense from the proceedings, the SEC aimed to show that Telegram's defense is insufficient, as the Howey decision and subsequent case law have adequately explained what constitutes an investment contract.
"In its letter to the Court, the SEC has asked Judge Castel to preserve its Motion to Strike, so as to document on the record the SEC's continuous assertion that the Defendant's particular 'claim' is not a claim and therefore doesn't belong in the pleadings." As a result of Judge Castel's preservation order, Rossow explained that the SEC will not "Need to continue writing and/or filing documents asserting that Defendants' claim is not a sufficient claim in the proceedings-as it is documented as if the SEC were continuously bringing it up." The SEC's claim that Telegram violated federal law effectively halted the planned launch of the Telegram Open Network on Oct. 31.
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