The SEC (Security and Exchange Commission) announced today that it filed an emergency action towards Telegram Group Inc. The blockchain messaging service company has raised more than 1.7 billion dollars in investment funds.

“Our emergency action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold,” said Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement. “We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.”

The SEC alleges that Telegram failed to register their offers and sales of Grams, which are securities, and are in violation of the registration provisions of the 1933 Securities Act.

“We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token,” Steven Peikin, Co-Director of the SEC’s Division of Enforcement. “Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”