The popular messaging application Telegram has delayed the release of its Gram tokens until April 2021 due to the pressure inserted by the SEC and US district courts. The company is offering investors to reimburse their investments, which could be done by selling some equity shares.
Telegram Postpones Gram
Pavel Durov’s company has sent a letter to all Telegram Open Network (TON) investors – the blockchain network behind the future cryptocurrency Gram. The token will not be issued by the April 30th, 2020 deadline, as previously announced.
Telegram plans to engage in further discussions with “the relevant authorities” to sort out all issues regarding TON and the future launch of the Gram token.
The firm believes that it will acquire the proper permission prior to April 30th, 2021. If successful, investors will receive either Grams or “potentially another cryptocurrency on the same terms as those in the original Purchase Agreement.”
Contrary, should the firm fail to obtain the required permission, it plans to repay the investors’ debt fully. Telegram may need to sell some equity later to get the necessary amount to repay investors, as the company told CryptoPotato.
Investors have until the end of the week to reply with their decision, per the letter.
The postponement for a year comes primarily because of the intense pressure by the SEC, which resulted in numerous unfavorable for Telegram US district court decisions.
For starters, last year, the Commission temporarily halted the sale of Telegram’s cryptocurrency, claiming that it was unregistered under existing regulations and failed to comply with them.
Last month, the court officially prohibited the sale of Gram tokens after the SEC presented internal communication showing that Telegram viewed the upcoming cryptocurrency as securities. Therefore, the Commission proved that Gram needed to fall under established regulations since security tokens are tradable financial assets that require personal identifications.
Telegram asked the court to clarify if this ban applied to non-American investors and promised that it will take the necessary measures to ensure reselling tokens to US citizens does not happen.
The court, however, denied Telegram’s claims because American investors can easily purchase the Gram tokens by simply disclaiming having a US-based address. Additionally, the TON blockchain “was designed and is intended to grant anonymity to those who purchase or sell Grams.”