The encrypted messaging giant Telegram is currently fighting a legal battle to get the go-ahead for its blockchain project, but so far, the company had no luck. Telegram filed an order of consent on May 7, agreeing to disclose a trove of communications and documentation as requested by the United States Securities and Exchange Commission. The documents requested by the US SEC concern the distribution of Gram tokens and purchase agreements relating to its 2018 ICO in which the encrypted messaging giant raised over $1.7 billion.
The US SEC is suing Telegram over conducting unlawful security sale.
Telegram’s decision to provide the documents comes when the Free Telegram Open Network (TON) community decided to launch a version of the TON blockchain via a ‘fork.’ The US SEC had halted the offering of Gram tokens back in October 2019 just a few weeks prior to the launch of Telegram Open Network (TON). The New York District Judge P. Kevin Castel had issued a preliminary injunction earlier this year, barring the firm from launching TON. The decision was made in March after six months of proceedings.
Telegram tells US investors to take 72% refunds now.
The encrypted messaging giant Telegram had offered its TON investors to take 72% of the refund now or wait till next year to get 110% refunds. However, Telegram did not extend this offer to US investors as they are being refunded 72% of their investments now. The company has agreed to disclose documents to SEC regarding any agreements offered or entered into with the Initial Purchasers of its tokens by May 20.
The messaging firm will also provide additional bank records to regulators and will answer the questions regarding the financial statements that it had already submitted to the court. Telegram will also have to provide any information regarding any assets disbursed to Initial Purchasers under the ICO agreement or any received from purchasers in connection with the termination of the agreement.