On October 24, 2019, investors of the Telegram Open Network (TON) project agreed not to demand their money back, after a majority of them decided to wait for the launch of the blockchain platform until April 2020.
According to reports, investors had to sign a form of approval for the launch extension, which was supposed to take place on October 31, 2019, officially.
The delay in TON’s launch was reported on October 11, 2019, after the U.S Securities and Exchange Commission [SEC] obtained a temporary injunction after Telegram was accused of conducting an illegal sale of their initial ‘Gram’ token offerings.
The Telegram-SEC case was scheduled to take place today, but the hearing has now been postponed until February 18th and 19th, 2020. Telegram officials view the postponement as a positive development, with a letter to investors revealing:
“We and our advisers will use the time to ensure that at the February hearing, the position of Telegram was presented and supported as much as possible.”
Due to the legal proceedings, the company now has to freeze the blockchain project temporarily.
Why The SEC Halted Telegram
The SEC said on October 11, 2019, that it had received a temporary restraining order against Telegram, which the regulator said had failed to register to sell 2.9 billion digital tokens to initial investors globally, including 1 billion to U.S. buyers.
Stephanie Avakian, co-director of the SEC’s Division of Enforcement, said that the action was intended to prevent Telegram from flooding the U.S. markets with digital tokens that were unlawfully sold.
The move marked the latest effort by the SEC to crack down on the growing cryptocurrency industry.
Telegram’s Petition Rejected
Telegram recently petitioned the courts and filed two Notices of Exempt Offering of Securities, claiming that they had willingly cooperated with the SEC commission and requested its response on the launch of TON and gram.
Its developers even made changes to the platform to address some of the issues expressed by the SEC.
However, the commission filed an emergency action against Telegram on October 11 in the federal district court in Manhattan, arguing that a postponement of the launch would not suffice. The regulator argued that such an arrangement would permit Telegram to continue committing offences.