A Foundation composed of Telegram Open Network (TON) system participants including computer scientists, blockchain developers, programmers, and validators among others condemned the lawsuit filed by the Securities and Exchange Commission (SEC) against Telegram Group and its subsidiary TON Issuer.
In October last year, the SEC said Telegram Group and TON Issuer for allegedly violating federal securities laws. The Commission accused the firms of conducting unregistered ongoing digital coin offerings in the United States.
Last week, the TON Community Foundation submitted an Amicus brief urging the U.S. District Court for the Southern District of New York to reject the Commission’s lawsuit due to its impulse to put the blockchain industry under its “innovation-suffocating regime.”
In the brief, the Foundation expressed its’ opposition to the SEC expert Professor Maurice Herlihy, who determined the following:
- TON Blockchain code lacks the critical components necessary for the launch.
- Its security is not proven 100 percent.
- Its services and applications that will eventually be purchased by Gram holders do not exist and/or the TON Blockchain is not mature enough to support them.
TON Community Foundation argues SEC expert’s definition of blockchain was obsolete”
The Foundation argued that Prof. Herlihy’s Report mischaracterized the TON Blockchain citing the reason that it is “not just a ledger, an append-only list of entries.
