Telegrams blockchain project TON has recently been delayed as they announced in an email sent to investors that their original date, October 30th, 2019 cannot be achieved. The new date, April 30th, 2020 has been set as the Securities and Exchange Commission (SEC) has filed a lawsuit against them, extending the development.
The email included information about the SEC and how they have received a restraining order that prohibits Telegram from launching the TON network and issuing their tokens. The SEC believes the tokens to be unregistered securities.
The email states that:
“We had intended to launch the TON network in late October. However, the recent SEC lawsuit has made that timing unachievable. We disagree with the SEC’s legal position and intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other governmental authorities in advance of the launch of the TON network.”
Although this extra time may be a good thing for the development of TON, the investors will have to agree on extending the deadline. Those who invested in February 2018 and March 2018 will need to separately approve these extensions, and if they disagree then they can only receive 77 percent of their money back from the ICO:
“In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”
If you would like to follow the case, they have a court hearing on October 24th in New York.