After a period when Telegram held reserved assets valued at more than US $ 1.2 MM, it is now forced to return them to the SEC. Why?
Recently, the United States Securities and Exchange Commission (SEC) reached an agreement with the instant messaging company Telegram on a dispute that has existed since October 2019. This dispute has to do with the money that various investors put in to found TON, the autonomous Telegram blockchain.
The company was ordered to return a portion of the capital raised, so Telegram returns US $ 1.2MM to the SEC, with no need to admit fault.
The field of legality: What does the agreement consist of?
The agreement presented by the SEC is that Telegram, who had all the mentioned assets (US $ 1.7 MM) destined for the development of its own blockchain platform, must return 70% to investors.
Approximately 171 investors participated in the ICO, waiting to see the emergence of the project for 2018, and that after two delays in launch it was canceled.
This means that Telegram returns US $ 1.2 MM to the SEC ($ 1,224 million to be exact). Given this, Pavel Durov, CEO of Telegram, stressed that this agreement confirms his commitment to return the remaining funds to investors under the purchase agreements.
However, in early 2020 this willingness mentioned by Durov to return the money was not so evident. Back then, Telegram was still reluctant to reveal bank records of how the millions raised had been spent.
In addition to this returned money, Telegram will have to pay a civil fine of US $ 18.5M, providing a 45-day notice if it tries to sell more tokens.
TON, the Telegram bet: The setback
Telegram went beyond the launch of a new blockchain, as it also included the introduction of its own token, the Gram, to the market. With this digital currency, the company would carry out an ICO to be able to finance the development of said platform.
Not everything went as expected. Since 2019, the SEC has been suing Telegram mainly on the grounds that its tokens were sold illegally.
On the contrary, Telegram responded at the time saying that there was nothing illegal about this. For the company this did not go beyond a simple advance sale of the rights to own the future Grams.
In the end, with so much pressure against it, this company had to back down on its project and give up on it.
“Unfortunately, we were unable to launch the TON platform on the due date due to the preliminary order ordered by the Court, and therefore we had to return the remaining funds to the buyers under our contractual agreements,” said Durov.
After his project was thrown overboard in the wake of legal mishaps, Telegram has openly expressed his particular interest in actively pursuing new ideas for a better future. In that future they bet on cryptocurrencies.
“We look forward to continuing our other projects and avenues of innovation, and we look forward to the regulatory environment for Blockchain technology in the US. be more favorable to others in the future, “concluded Durov.