The Telegram ICO, for the TON, or Telegram Open Network, once ranked as the highest earning ICO and garnered a lot of attention from the cryptocurrency world, and indeed the regulators too.
On the eve of its launch, the much hyped and heralded TON network was quickly brought to a stop when the SEC stepped in and said the project fell under their jurisdiction as despite the tokens being only for private investors, the fact that they could be sold on an open market after distribution made its a securities infraction.
Thus, a block was put in from the SEC and the TON network ground to a halt. There were efforts from the company to try and appeal the decision, but nothing amounted to it — other than a forked project from the developers that ended up having nothing to do with Telegram, or their rich and powerful investors.
These inventors now appear to be starting to show their annoyance as it appears that there is a decision brewing that could see Telegram sued for the failed launch of the project from the investors.
Telegram is said to have spent $405 million from the $1.7 billion token sale proceeds developing both TON blockchain and its messaging app, but that has not helped the investors in any way, said Vladimir Smerkis, head of crypto startup Tokenbox and one of the investors.
“We are considering filing a lawsuit, as the money [Telegram CEO] Pavel Durov spent on the project got investors nothing, while at least, it would be fair to talk about getting Telegram’s equity, for example,” Smerkis said.
“There are funds that are considering a class action against Telegram,” another one of the investors told CoinDesk, though he said he does not plan to participate.
Investors in the U.S., Europe and Russia are now discussing these potential lawsuits, it was also added.
“Many people are upset that the project is over. Knowing Durov’s business acumen, we hoped he would fight for the existence of TON, but apparently, the risks he faced exceeded the upside he could get if the project was launched,” Smerkis said.
Meanwhile, the Free Ton forked network is supported by 13 validators and the creators of this fork have used code maintained by TON Labs. In fact, the genesis block of the new blockchain was generated last month, bringing into existence
“The network must not be censored, it must go to the world,” TON Labs CTO Mitya Goroshevsky said.