Telegram will pay $18.5 million to settle a lawsuit with the SEC regarding ICO TON. In addition, the company will have to return $1.22 billion to investors.
On June 11, Telegram and the us securities and exchange Commission (SEC) entered into an agreement to settle claims, according to which the Telegram company is obliged to return $1.22 billion raised in the ICO (72% of the collected amount of $1.7 billion – ed.), because of which the court began with the us regulator.
In October, the SEC accused messenger of unregistered token sales that violated the securities Act of 1933. This amount includes $1.19 billion, which will be paid as compensation for the termination of the agreement with investors to purchase tokens, as well as funds that were borrowed from some telegram investors this year.
In April, Telegram postponed the launch of the TON blockchain, moving it to April 2021. The company offered ICO participants to wait and leave their investments in the company with an opportunity to get 110% in a year. This proposal was put forward as an alternative to the agreement with investors, according to which in may they were supposed to receive 72% of the invested funds.
Telegram is required to pay a fine to the SEC within 30 days and return funds to investors within four years. Moreover, within the next three years, Telegram is required to notify the SEC of further plans to issue “cryptocurrencies, digital coins, digital tokens” or any digital assets.
Recall that in may, telegram founder Pavel Durov announced the termination of work on the TON platform due to the fact that the SEC has obtained a preliminary injunction on the distribution of Gram tokens, which the Agency considered securities. This played a crucial role in closing the project.
However, last month, an independent group of developers, the Free TON Community, launched the Free TON blockchain based on telegram’s developments, but without the company’s participation. The community said that if the us court banned Telegram from launching its blockchain, it would not prevent other people from doing so.