One of the most anticipated cryptocurrency projects that have been constantly blocked by the regulators is the Telegram Open Network (TON) – Telegram’s blockchain and cryptocurrency network. The company has been involved in an on-going battle with the Securities and Exchange Commission (SEC), as it has been the biggest hurdle in the path to the launch of TON.

The much-anticipated launch was delayed after the U.S Securities and Exchange Commission [SEC] obtained a temporary injunction after Telegram was accused of conducting an illegal sale of their initial ‘Gram’ token offerings.

As per the SEC, Telegram had previously sold 2.9 billion gram tokens “at discounted prices to 171 initial purchasers worldwide,” the SEC press release said. This includes 1 billion tokens that were sold to U.S based investors. The complaint alleges Telegram did not register with the SEC for the sale.

Soon after the SEC had requested a court order that granted it full access to Telegram’s financial records that show how “how much money Telegram has spent, and in what manner, in developing the TON Blockchain, the Telegram Messenger application to be integrated with the TON Blockchain, and related applications.” Telegram had refused to share the financial details.

Telegram won?

Recent reports state the New York Southern District Court has rejected the Securities and Exchange Commission’s (SEC) attempt to get the bank records from Telegram related to its token sales.

As per a report from media outlet FinanceFeeds, the court had held a telephone conference with the parties on Monday and Judge P. Kevin Castel had signed an order denying without prejudice SEC’s letter motion to compel.

However, there is a clause that states that the SEC will get access to at least some of the requested information, per the report. Telegram, on the other hand, has time until Jan. 9 to declare a proposed schedule for a review of the requested bank records to ensure that the production of such records complies with foreign data privacy laws.

This isn’t the first time Telegram is fighting back against the SEC. The messaging giant had filed a response to the regulators stating that the emergency injunction imposed on it had no warrant whatsoever.

Furthermore, Telegram recently clarified in an official blog post that any website claiming to be “affiliated” with Telegram and offering ‘token presales’ of Gram tokens, not officially linked to Telegram as no Grams have been issued yet. The company also stated that following the launch of the TON network, Telegram won’t be able to control the blockchain and the ecosystem. It said: