According to a letter to investors of the second round of the Telegram ICO, Telegram proposed its investors to agree to postpone the launch of the TON blockchain platform and the Gram cryptocurrency until April 30, 2020, or return 77% of the amount invested.
Investors will have to make a decision by October 23, before the meeting of the company’s lawyers with representatives of the US Securities and Exchange Commission (SEC). In early October, the regulator obtained a temporary injunction on the Gram cryptocurrency sales, and now the parties have to agree on a deferment.
If most investors do not agree to sign an additional agreement, their Gram purchase agreement will expire on October 31. In this case, investors will be able to expect compensation in the amount of about 77% of the invested amount, according to Telegram. If the deadline is extended, Telegram may spend another $ 80 million.
Telegram lawyers have already notified the US court of their readiness to postpone the launch of the TON blockchain platform, despite the fact that they consider the SEC claims to be groundless.
SEC does not believe Gram is money
In February and March 2018, two groups of investors bought special financial instruments SAFT from the TON organizers, which give the right to exchange it for Gram tokens.
Organizers’ plan was that the SAFTs issued under the ICO are distributed among a limited number of individuals – accredited investors, and therefore, even if the SEC considers it to be securities, then it will be possible to refer to the exception 506 (c) of the Securities Act of 1933. This exception allows a limited issue of assets having the status of securities without the necessity to go through the full registration procedure, which is carried out during an IPO.
The organizers believed that Gram is not even utility tokens but the “global money”. However, officials see Gram as digital tokens that have all the attributes of securities. This means that investors can not get their tokens without violating American securities laws. Moreover, the SEC noted that since investors are able to sell the assets received after exchanging SAFT for Gram, this invalidates the right to issue SAFT itself, making the reference to clause 506 (c) invalid. Thus, the project must be completely stopped, especially since 39 US residents are involved in the project.