Telegram told investors it was using Wall Street megabanks BNY Mellon and Credit Suisse to move and store fiat currency raised in last year’s blockchain token sale, court filings show.
On Monday, the Securities and Exchange Commission (SEC) filed a proposed order with the U.S. District Court for the Southern District of New York to request the British High Court’s assistance in getting the testimony of Telegram’s former chief investment advisor, John Hyman.
It followed a similar filing on Friday from the SEC, which has accused Telegram of selling unregistered securities and is seeking to block the issuance of the Telegram Open Network (TON) project’s tokens.
Attached to the new document are Telegram messenger exchanges between Hyman and some of the investors who were negotiating the purchase of the tokens, known as grams, that would run on the TON blockchain.
During one such chat, Telegram employee Shyam Parekh explained to an investor how the funds were supposed to reach the company.
“We will receive the funds through BNY, which will forward the funds to CS (Schweiz) AG for final credit to Credit Suisse AG,” Parekh wrote, providing the international bank code for wiring money to Credit Suisse via the Swift network.
BNY Mellon and Credit Suisse declined to comment. It’s not clear from the filing whether the investors Parekh was communicating with used either bank to send funds to Telegram.
The banks' apparent involvement is notable since few financial institutions have been eager to work with cryptocurrency startups and projects, due to perceived reputational and compliance risks. However, Telegram was an established company before it embarked on the TON project. Read More...