Telegram Delays Blockchain Launch Because Of SEC Lawsuit, Set To Pay Investors Up To $1.2 Billion

According to a statement released on Wednesday by messaging app Telegram, it has put a hold on its plan to launch its much-anticipated TON blockchain with the report saying the official launch will now take place in April 2021. Investors said they got a letter from the messaging app, which stated that they would return their stakes up to 72% because of the clause in the contract. The terms of the agreement were revisited when they postponed the first launch of the blockchain in October. They were said to be sued by the U.S Securities and Exchange Commission because they were running an unregistered security sale that totaled up to $1.7 billion. The lawsuit made Telegram revisit the scheduled launch date while setting a new one for April 30, 2020.

The messaging app lost the first court battle against the SEC with the ruling judge saying Telegram will not be able to debut its blockchain or launch its long-awaited “gram” tokens. Telegram then chose to ask some of their investors who chose to ignore their 72% for the time being to borrow the company the funds till April next year. “As a token of gratitude for your trust in TON, we are also offering you an alternative option to receive 110% of your original investment by April 30, 2021, which is 53% higher than the Termination Amount.”

Telegram is “continuing to engage in discussions with the relevant authorities,” the letter continues. Depending on how the negotiations go, those investors could still receive “Grams or potentially another cryptocurrency on the same terms as those in their original Purchase Agreements.” The letter stated. Telegram has assured the investors that if regulators further stop their launch, then they will pay their funds in equity, which would be gathered as a result of their huge customer base that has grown to over 400%.

Telegram
Telegram

Sergey Solonin, an investor with Telegram, has said that the new proposition by the company is a bonus in the part of investors because they will earn more than their investments when the time comes. “The terms are excellent, I think a lot of investors will choose to keep their money in Telegram,” he said. “There is definitely capital value there, and even if Telegram will ultimately not be allowed to issue grams, I think this year, they can find an investor and pay the money back [to the token purchasers],” Solomon further stated.

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