Global messaging giant Telegram was all set to launch its much-awaited Telegram Open Network (TON) network but things did not go as planned. After raising a whopping $1.7 billion from a token sale, the project was stopped in its tracks after the U.S. Securities and Exchange Commission (SEC) placed an emergency restraining order against the Telegram Group and its subsidiary TON, thus halting their Token issuance.
After a lengthy battle with the SEC U.S. District Judge P. Kevin Castel of the Southern District of New York agreed that the SEC demonstrated a plausible case that Telegram sold unregistered securities in breach of U.S. securities law. The Judge issued a preliminary injunction that stopped Telegram from launching TON.
Telegram opens up
Furthermore, latest reports state that Telegram has signed an agreement to share the details about “its communications regarding any agreements offered or entered into with the Initial Purchasers” of its Gram token sale back in 2018.
The move comes in line following earlier claims from the SEC stating that Telegram sold 2.9 billion gram tokens at discounted prices to 171 initial purchasers worldwide.
Telegram previously refused to share this data stating that the legal team would need to analyze the data protection laws of multiple foreign jurisdictions, to completely comply with all foreign privacy laws. They added that the review would mean analysis of approximately 4600 transactions that comprises of 770 different entities and individuals.
The firm is now ready to provide all the banking records as required by the SEC and provide further details about the financial statements that were submitted to the SEC.
The regulators will also receive information “regarding any assets disbursed to Initial Purchasers under the Purchase Agreements and assets received from Initial Purchasers in connection with the termination of the Purchase Agreements.”
The agreement also mentions that Telegram will not object on the basis of timelessness, but the firm has revered all other rights to objection.
What happens to TON?
U.S. base TON investors are now being refunded at a rate of 72 cents to the dollar. However, international investors have the option to take a 72% refund now or wait until April 2021 to get a 110% refund. American investors won’t be eligible for the 110% refund due to “uncertain stance by regulatory authorities in the United States.”
The news comes one the same day TON labs and the TON community as a whole, decided to go ahead with the development of its own blockchain network. Dubbed ‘Free TON’, the blockchain is set to use code maintained by TON labs and has the support of 13 validators
TON Labs CTO Mitya Goroshevsky said:
“The network must not be censored, it must go to the world.”