Daily Management Review

Telegram postpones launch of tokens for six months


Telegram Group is forced to postpone the launch of its cryptocurrency due to a temporary ban on the sale of tokens in the United States, introduced after the lawsuit was filed in court by the US Securities and Exchange Commission (SEC).

Telegram has warned investors participating in its ICO that they will be able to return only 77% of the invested funds unless they agree to postpone the launch of tokens for six months.

The company raised $ 1.7 billion in an initial token offering (ICO) last year to create the Gram cryptocurrency and related blockchain infrastructure. Telegram promised to provide investors with access to tokens no later than October 31, but the SEC demanded that the court suspend the ICO, which it considered illegal.

In the event that investors do not agree to postpone the launch of tokens until April 30, the existing agreements with them will be terminated, and Telegram will refund them a total of about $ 1.3 billion, a letter from the founder of Telegram, Pavel Durov, to investors says. The letter notes that the company is working to address SEC concerns.

Earlier this month, SEC Co-Director of Law Enforcement Stephanie Avakyan said the regulator’s lawsuit “aims to prevent Telegram from flooding US markets with digital tokens, which we estimate were illegally placed.”

source: bloomberg.com