Pavel and Nikolai Durov reported that they raised $850 mln in the second round of their initial coin offering (ICO) in a notice signed today with the US Securities and Exchange Commission.
The ICO sought investment to support the development of the Telegram messenger app and its own Blockchain platform Telegraph Open Network. While the document does not disclose the identity of investors, 94 different entities took part in the ICO, which started on March 14. In the column wherein the applicant specifies which type of securities are on offer, the document states “Purchase Agreements for Cryptocurrency.”
The offering was given under Federal Exemption 506(c), which states that, “a company can broadly solicit and generally advertise the offering and still be deemed to be in compliance with the exemption’s requirements” so long as certain conditions are met. First, all investors in the offering must be accredited, and second, the issuer must take reasonable steps to verify said accreditation.