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Writer's pictureFahad H

Telegram Looks to Cut Deal With TON Blockchain Investors After SEC Order


Telegram has notified buyers that the TON blockchain mission can be launched later than deliberate, pushing the deadline from Oct. 30 to April 30, 2020.

In an e-mail to buyers reviewed by CoinDesk, Telegram cited its current run-in with the Securities and Exchange Commission (SEC), which obtained a restraining order prohibiting the messenger app firm from launching TON and issuing gram tokens. The company deemed grams to be unregistered securities.

The e-mail, which was despatched lately to buyers within the second of Telegram’s two $850 million fundraising spherical from early 2019, says:

“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.”

The extra time can be a bonus for firms engaged on functions for the TON community, Telegram mentioned.

The deadline might be prolonged with the consent of buyers holding a majority of the tokens purchased within the spherical, the e-mail says.

The two teams of buyers, those that purchased tokens in February 2019 and those that did so in March 2019, might want to approve the extension individually, and it’s doable that one group agrees to postpone whereas the opposite refuses:

“In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”

Investors within the second spherical should signal a type approving the extension earlier than Oct. 23. If the bulk chooses to not signal, these buyers can get again “approximately 77 percent” of their cash.

The first-round buyers obtained “a separate communication” from Telegram, the letter says.

If the deadline is prolonged, Telegram plans to spend one other $80 million earlier than April 30.

“We look forward to receiving your support to ensure we can proceed with our vision for TON,” the letter concludes.

On Oct. 11, the SEC obtained an emergency restraining order to halt the launch of TON. Soon after the corporate notified buyers it would postpone the deliberate end-of-October launch to resolve the state of affairs.

A courtroom listening to within the case is scheduled on Oct. 24 in New York.


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