In a new update from the United States Security and Exchange Commission’s (SEC) lawsuit bout the offering of Gram tokens by Telegram, the government arm is arguing that the messaging service's token and blockchain service had nefarious plans. The filing was placed on January 21, 2020 with the Southern District of New York. In it, the SEC responded to the TElegram's initial motion for a summary judgement. The SEC decried the Telegram Open Network in its filing, stating that Telegram has made no effort to defend and shared no evidence about its blockchain's state of development at the launch. It targeted few, if any, expected legitimate uses for the Gram coins.

Telegram had its initial coin offering in 2018. It ran two private investment stages that yielded an impressive $1.7 billion in funds. In 2019, the SEC started its investigation into the business's cryptocurrency plans. The SEC claimed that Telegram did not register with it for its initial coin offering or its Gram tokens.

In the court filing, Telegram argued that there are specific uses for the Gram tokens. In the same filing, Telegram did point out that using Grams is not a requirement within the firm's apps. Also in the filing, Telegram provided a chart with the uses of Gram tokens, their applications and so forth. The SEC had several problems with the company's chart.

The SEC stated that Telegram's chart does not separate which applications have been developed, which ones are in the process of being developed and which ones are theoretical and nowhere near development. The SEC also argued that there is no reliable or clear evidence int he chart about the nature or state of any of the applications that Telegram listed.

The court filing lists many other questions related to Gram usage. One of them is the offering of Telegram. The SEC has a long list of questions about the whole shebang, and there is no ready resolution to them. Over the past two years, the SEC has put its feet down on a lot of initial coin offerings and their blockchains and tokens.