- 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.