Telegram Lets Go Of GRAM Token Distribution Battle With SEC As Latest Appeal is Dropped

  • Telegram withdraws its appeal against the U.S Federal Court ruling forbidding the distribution of GRAM tokens to its TON blockchain investors.
  • The move comes as the final straw in what has been a long-running battle between the messaging app firm and the U.S Securities Exchange Commission (SEC).

In a document sent to the United States Court Of Appeals for The Second Circuit, earlier on Monday, May 25, 2020, Telegram confirmed its final push towards offering its GRAM tokens has come to an end after withdrawing its appeal.

Telegram’s $1.7 billion ICO offering tokens distribution was halted earlier in March as U.S federal court declared it an illegal securities offering to which Telegram appealed. However, following the public announcement by the CEO of Telegram, Pavel Durov, put an official end to Telegram’s role in the TON blockchain project, as the company as officially ended their fight for the project. The statement reads,

“The parties in the above-referenced case [Telegram Group, Inc., Ton Issuer, Inc. and U.S SEC] have filed a stipulation withdrawing this appeal pursuant to Local Rule 42.1”

Telegram’s death spiral from TON

After a long six month battle in court, Telegram finally conceded to the SEC agreeing to hold the distribution of the GRAM tokens. The $1.7 billion ICO raised in two rounds back in 2018 will be returned to investors.

The money will be returned in two ways, to which U.S investors are only allowed the first option; take back 72% of your investment immediately as agreed in the contract or loan the money back to Telegram with a guarantee of getting back 110% of the total invested funds in April 2021.

The company faces possible lawsuits following the non-distribution of the tokens with others claiming the terms offered for a refund are not fair. Despite Telegram leaving the TON blockchain project, the development of the open-sourced project will continue as the code is available on GitHub.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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