A review of financial records requested by the U.S. Securities and Exchange Commission (SEC) would require between five and seven weeks of processing, stated the group of lawyers representing Telegram. The lawyers claimed in a court filing yesterday that the process would be lengthy as they are required to analyze data protection laws from several nations before completing the data review.
Furthermore, if Telegram were to comply with the SEC’s most recent request, the process would involve taking into account foreign data privacy laws for around 4,600 transactions. In total, Telegram needs to review transactions from 770 individuals and entities.
Based on the presented data, a quick sample shows that 10% of the involved entities and individuals come from 12 different foreign jurisdictions. While Telegram had previous experience with all of them, two new jurisdictions represent an area with which they had no previous experience.
The analysis of financial data from all 770 entities, including the necessary redactions required to comply with data privacy laws, requires two months of work according to the lawyers.
U.S. court denied SEC’s previous request for bank account records
As CryptoPythia reported on Jan 4, the SEC previously requested from Telegram to release their bank account records. Calling the request an ‘unfounded fishing expedition,’ the lawyers defending Telegram refused to comply on the ground of protecting highly sensitive financial data.
On Jan 7, the court denied the request and instead ordered that the company provides proof that their financial records comply with all data privacy laws from international jurisdictions. Despite partially saving the company, the court has prolonged the case with its latest decision.
A case with no end in sight?
For now, the case will not advance any further until Telegram finishes the two-month-long process. As a reminder, SEC started the case by stating that the company’s $1.7 billion ICO represented an ‘unregistered securities sale.’