Telegram creators Pavel and Nikolai Durov have filed a “Notice of Exempt Offering of Securities” with the US Securities and Exchange Commission (SEC) Feb. 13, reporting $850 mln raised underneath the SEC exemption Rule 506(c) from 81 traders for “the event of the TON Blockchain, the event and upkeep of Telegram Messenger.”
The kind of securities provided within the SEC submitting are described as “Buy Agreements for Cryptocurrency”, and are filed underneath the Rule 506(c) exemption that implies that US residents who make investments should be accredited traders — these price greater than $1 mln or which have an annual earnings of $200,000 — to ensure that the tokens to not need to be registered with the SEC as securities.
The Eastman Kodak Firm, which had introduced the launch of their very own ICO underneath the identical exemption in early January, 2018, has postponed their ICO to take extra time to confirm their traders’ accredited standing.
The date of the primary sale for the Durovs’ ICO is famous as Jan. 29 of this 12 months. By submitting with the SEC, the Durovs are making ready to permit for US residents to legally put money into their challenge, and implying that US residents could in truth be a number of the 81 traders.
Though the SEC submitting didn’t comprise the names of any traders within the Durov’s securities providing, Russian information outlet Vedomosti revealed at this time the names of a number of the largest alleged traders, citing inside sources.
Russian billionaire Roman Abramovich, who purportedly has already invested in cryptocurrencies, reportedly was one of many first Russian residents to be accepted to put money into the challenge. One supply allegedly near the billionaire advised Vedomosti that Abramovich had invested as a lot as $300 mln, nevertheless one other supply claimed the sum was nearer to $20 mln.
Sergei Solonin, CEO of Russian cost service supplier QIWI, invested $17 mln, Vedomosti writes. David Yakobashvili, co-founder of Russian-based dairy product firm Wimm-Invoice-Dann, advised the publication that invested $10 mln within the challenge.
A Telegram ICO has been rumored to be within the making since December 2017, when a former Telegram worker wrote on-line that Telegram could be launching their very own Blockchain platform and cryptocurrency, known as both “The Open Community” or “Telegram Open Community” (TON).
A white paper, alleging to be for TON, was leaked in mid-January, however its authenticity has but to be confirmed publicly by the Durov brothers.
The Durov’s SEC submitting notes two issuers of securities, TON Issuers Inc. and Telegram Group Inc., each positioned within the British Virgin Islands. Underneath the “Associated individuals” part of the submitting, Pavel Durov is listed as Government Officer and Director, whereas his brother Nikolai is simply listed as Government Officer.
A supply accustomed to the TON funding advised Vedomosti that the funding course of was not carried out as an ICO within the “typical sense”, by which a challenge’s tokens are bought for different cryptocurrency, often both Bitcoin (BTC) or Ethereum (ETH). As an alternative, the supply claims, it was extra like a “closed allocation of securities in abnormal [fiat] foreign money –dollars and euros.”
In keeping with the identical supply, and in keeping with the brothers’ SEC submitting, traders purchased rights to the inner cryptocurrency of TON, known as “Grams”, which will likely be distributed to them as soon as the platform is launched.