American Telegram Open Network (TON) announced that investors will only be eligible for an immediate 72 percent repayment, instead of a 110 percent refund option in April 2021, Russian news agency RBC reports.
Soon after missing the April 30 deadline for the launch of the Telegram Open Network (TON), Telegram has sent its investors another letter. Telegram reportedly stated in the new letter that US TON investors will not be able to stay in the TON project for another 12 months
The 110% Option Retracted Due to Regulatory Uncertainty
The news comes after the April 30 offer by Telegram to refund its investors. The firm has proposed two options as reported — an immediate refund of 72 percent, or 110 percent in 12 months. The firm offered the second option as a “thank you” token of confidence in TON, promising to provide a loan agreement to interested investors soon.
According to an investor letter seen by RBC, Telegram had to withdraw the second option for its American investors because of “uncertain stance by regulatory authorities in the United States.”
Telegram has struggled to resolve regulatory problems with the U.S. Since October 2019 the Securities and Exchange Commission (SEC) has been launching the TON network and its native Gram (GRM) token.
Telegram had launched the project in 2017 and was preparing to launch the TON network in late 2019. However, the SEC deemed the initial $1.7 billion coin offering by Telegram to be illegal (ICO), arguing that the firm violated U.S. securities law by conducting the ICO.
Last March, US District Court for New York’s Southern District tentatively acknowledged that the SEC has a good chance to prove that Telegram’s GRAMs were unregistered securities, following a long-running legal dispute.
As a result, the delivery of Gram tokens to investors was banned from Telegram, at least until trial. Afterwards, Telegram CEO Pavel Durov offered a refund plan on April 30, apparently accepting the court ruling.
Soon after Telegram revealed the plan to repay the investor, the TON project was criticized by some large figures in the crypto community.
Mike Novogratz, CEO of the Crypto merchant bank, Galaxy Digital, and a major Bitcoin (BTC) bull, argued that either TON or Gram is not needed, on April 30. According to reports, independent validators can still launch the TON network whatever the regulatory situation.