Telegram has withdrawn its appeal in its case against the freezing of the Telegram Open Network (TON) network and distribution of the digital assets, according to court documents released on May 22. The decision effectively cements the ends of the TON project.
Telegram finally decided to drop its TON project in May 2020, following a protracted case against the United States Securities and Exchange Commission (SEC). In October 2019, the latter filed an emergency action and obtained a temporary restraining order against the ICO and maintained that the TON network ICO and the Grams tokens was an unregistered sale of securities.
Founder Pavel Durov, who announced the closure of the network and lambasted what he believed was an exploitation by authorities. Durov also heavily criticized the centralized nature of the world and how the United States' decision effectively meant that TON could not operate anywhere.
After its announcement in 2017, the TON project found itself in the centre of the crypto world, as a major software application company had decided to embrace crypto. It raised $1.7 billion in its ICO, which drew much attention.
Telegram was forced to delay the launch of its network twice, first in October 2019 and then in April 2020. While it fought to ensure that the network would launch, it looked increasingly likely as time passed. In April, Telegram agreed to refund investors up to 72% of their investment or 110% of their investment in April 2021. This too caused much drama, as American investors were only given the former option.
The TON community decided to fork the network, taking matters into their own hands and avoiding influence from both Telegram and the SEC. It continues to operate, directed by TON Labs, but is not endorsed by Telegram.