Lawyers representing encrypted messaging app Telegram take requested a United States court throw out regulator demands for its bank accounts.

In a letter of the alphabet to Judge P. Kevin Castel at the Daniel Patrick Moynihan United States Courthouse in New York on Jan. 3, Skadden, Arps, Slate, Meagher & Flom LLP described the asking from the Securities and Exchange Commission (SEC) every bit an "unfounded fishing expedition."

Banking company accounts have "no begetting" on case

The SEC had demanded Telegram hand over details of how it spent the proceeds of its initial coin offering (ICO), which raised $1.seven billion.

A letter to Judge Castel dated January. two resulted in Castel giving Telegram less than a single business concern twenty-four hour period to respond.

"On behalf of Defendants, we write in opposition to the letter movement filed past (the SEC), seeking to compel the production of voluminous and highly sensitive banking concern records that have lilliputian to no bearing on the claims and defenses in this activeness and would impose undue burdens on Defendants," the latest alphabetic character reads.

The lawyers continue:

"Plaintiff's alphabetic character misconstrues the legal issues in the case and omits critical facts. Defendants respectfully submit that Plaintiffs motion to compel constitutes an unfounded angling expedition and should exist denied."

Crunch time for Telegram

Castel will at present decide whether or non to approve the SEC'south letter to compel Telegram to part with the information.

Telegram's latest debacle continues a lengthy legal procedure that has so far failed to upshot in definitive action.

The SEC has investigated various ICOs for securities violations, with Canadian messaging app Kik's $100 million token sale likewise sparking a legal battle. As Cointelegraph reported, the company was near forced to shut down in October last year every bit a result.

Terminal calendar month, SEC chairman Jay Clayton described the body's approach to the cryptocurrency sphere as "measured."