Telegram’s TON network falls under the United States Securities and Exchange Commission’s (SEC) crosshairs after raising $1,7 billion through an ICO in 2018.
SEC’s accusations are aimed at proving Telegram’s token offering to be illegal. Also, Telegram agreed with investors if the launch date, scheduled for October 31st, is postponed, investors have to be refunded. The fundraisers, however, voted for denial of refunding and gave another release date for the Gram token – April 30th.
With such a decision, Telegram would be able to continue the development of its Telegram Open Network (TON) and spend another $80 million until the new release date. It is expected for investors to announce their decision officially on October 24th.
The Telegram-SEC saga will continue on 18th and 19th February, when Telegram officials will participate in a court hearing. The main point in their defense will be the statement that the Gram token is not and should not be considered as a security asset. Telegram assured investors that the February hearings will be held to set an exact date for the TON release.
“We will use the time until February to ensure Telegram’s position is solid and backed as much as possible,” the letter to investors reads.
Telegram’s ICO has been a victim of countless accusations, one of them being the “force majeure” clause in the agreements with investors. Telegram described when and how the company would not return its ICO funds. One of the terms includes disasters, wars, terrorism, but also applicable laws, regulations, and governmental actions.
The “force majeure” clause means Telegram keeps its right not to pay a termination sum if a delay occurs. Investors, with their vote, however, gave Telegram the “thumbs up” to continue developing the network and the associated Gram token.
The lawsuit against Telegram comes after the company filed two Notices of Exempt Offering of Securities. Despite the two Notices, the SEC filed an emergency action against Telegram on October 11th in the federal district court in Manhattan.