Messaging giant Telegram has informed investors that it will delay the launch of its public blockchain TON, including the GRAM token, following regulatory uncertainty in the United States.
Last week it was reported that the U.S. Securities and Exchange Commission (SEC) had issued an emergency restraining order against Telegram and the sale of their token. The SEC claimed that Telegram’s token constituted a security and that the company had failed to properly register for the sale of GRAM, despite U.S. buyers being involved in the original ICO.
Telegram is now telling investors it will delay the launch of TON from Oct. 30 to a proposed deadline of April 30, 2020, with the potential to issue a refund.
The email to investors clarified the company’s position in the ongoing SEC lawsuit,
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.
Notified investors will be required to sign a form approving the deadline extension by Oct. 23. If the majority fails to ratify the extension, Telegram will issue a refund of “approximately 77 percent” of the original investment cost.
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