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In a letter to the investors, Telegram assured that it is working on the possible solution for the token launch and is currently talking to the SEC authorities.
In an unfortunate turn of events, messaging giant Telegram is facing major resistance from the U.S. SEC for token-sale of its native Gram (GRM) tokens. This has further resulted in the delay of the launch of the Telegram Open Network (TON) blockchain.
Last Friday, the SEC issued an order calling Telegram’s token sale as “unlawful” under the agency’s securities laws. As a result, Telegram has push-ahead its plans of TON blockchain launch and GRM token issuance.
Appraising the investors of this situation with the SEC, Telegram has requested its investors to wait for some more time. By further assuring the investors, the messaging giant said that it is working out the best possible solution. However, for now, they have no option but to delay the TON blockchain launch.
In a letter accessed by U.Today, Telegram told its investors that its developers have been constantly talking to the SEC authorities over the last 18 months. It also adds that it has received some feedback from the securities regulator on the development of the TON blockchain. The recent clampdown by the SEC has surprised them. The letter reads:
“We were surprised and disappointed that the SEC chose to file the lawsuit under these circumstances, and we disagree with the SEC’s legal position. We are continuing to evaluate the best means by which to resolve the situation in the interests of relevant parties, including but not limited to assessing whether to seek to delay the launch date.”
At this stage, it is clear that the token issuance won’t take by the earlier schedule of October 31.
SEC’s Concerns With the Telegram Token Sale
Telegram announced its blockchain plans last year in January. Since then, the messaging giant is working on the launch of its own blockchain and its native cryptocurrency. Reportedly, Telegram also raised $1.7 billion in early token-sale to investors, last year.
The SEC has argued that Telegram sold the token as unregistered securities. However, as per the agency’s laws, such a token sale falls under the securities laws formed by the agency. It added that the messaging giant failed its due diligence of informing the investors of “Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.”
The latest order by the SEC has put Telegram in a fix with no clear road ahead. It remains to be seen for how long does the SEC manages to convince the investors to wait for the token issuance.
It is known that the SEC filed a temporary restraining order. And a court hearing is scheduled for October 24 and it will take place in New York.
Due to this unpleasantly high level of uncertainty related to regulatory issues, the TON Board channel on Telegram is temporarily not working.