Lawyers of the messaging service provider Telegram have stated that a recently requested review of financial records might take as much as two months to complete, Cointelegraph reports on January 11th.
The review was requested by the U.S. market regulator, the United States Securities and Exchange Commission (SEC) in the case against the messaging giant accused of hosting an unregistered securities offering. In order to prove Telegram's data-privacy compliance, more than 4600 transactions comprising 770 different entities will need to be analysed and compared against applicable regulation.
The messaging service provider decided to fight SEC's accusations of hosting an unregistered securities offering by conducting their initial token offering which managed to raise more than USD1.7bn in funding according to some reports. While the amount of funding raised might fund an extensive legal battle, and they currently have the initial investors on their side, other companies that have tired to take on the U.S. market regulator have been forced to capitulate or have met an untimely demise. It remains to be seen how long can Telegram keep this up, as the regulator managed to prove wrongdoings in almost all cases it brought up and this might be the case here despite Telegram's efforts.