Telegram ended a legal battle with the SEC over the TON blockchain project

Telegram ended a legal battle with the SEC over the TON blockchain project

By ... | World of Crypto | 26 May 2020


In a lawsuit against the US Securities and Exchange Commission (SEC), Telegram rolled up its sword and no longer wants to fight the ban on its blockchain token project. On Friday, the Telegram announced that it had withdrawn its appeal against the court's previous decision to support the SEC in banning the publication of Gram Tokens. A new document from the Court of Appeal referred to T: "The parties to the case have withdrawn their appeal on Article 42.1."
This law means that the parties have agreed to end the case without a court order. Similarly, the case is now over, but not necessarily forever. In early 2018, Telegram raised $ 1.7 billion to sell private tokens to expand its blockchain called the Telegram Open Network, or TON. The project was halted by the SEC in the weeks leading up to its planned implementation due to a breach of US securities law in October.

Following six months of written discussion by the parties and a hearing in New York's Southern District Court, Judge Kevin Costel supported the Telegram's initial ruling banning the issuance of tokens to investors on March 24. Telegram immediately appealed. On May 12, Telegram CEO Pavel Durov announced in a blog post that the TON project would no longer be developed. In this post, Dudorov's first public statement about the project, which was largely under investigation, was included.

Gram's investors are currently offered two options: either to withdraw 72% of their investment in TON, in accordance with the amendment agreed in the previous contract. Or they lend money to Telegram at 110% interest for one year. Of course, only the first option is offered to American investors. Some investors said they had received their refunds, while others said they had chosen a loan option. However, some were dissatisfied with the result and said they intended to sue Telegram. No lawsuit has been filed so far. Of course, the TON project may not be complete. Earlier this month, a group of professional creditors with the support of Ton Labs (a startup that had previously helped Telegram in the project) launched the Fork blockchain version of Telegram called Free TON.

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