Telegram’s TON case is going through a rough phase just before the launch of its Network. In the latest update, the United States District Court for the Southern District of New York (Mother Court) has put the matter on ice until next year.
The Securities and Exchange Commission’s (SEC) preliminary injunction filing against Telegram Open Network (TON) and its Gram token have postponed to Feb. 18–19, 2020, hearing, as per the court’s order.
On Oct 16, Telegram has responded to SEC’s emergency action and shown the denial to accept, that it’s TON Gram token is a security and insist the token has to be regarded as a currency. The defendant further requested the court, the preliminary injunction should be refuted.
As KoinPost reported, SEC has further responded to Telegram’s counterclaim on Oct 17, wherein, the regulator asked the New York Court not to accept Telegram’s request and stressed about the future violating conducts by the defendants, regarding the distribution of gram token and related offenses.
Earlier, on Oct 11, a complaint and an application filed for a temporary restraining order (TRO) by SEC that asked Telegram to present in the court hearing on 24th Oct. However, the New York Court in its recent response after SEC’s last filling against Telegram and TON, carried forward the hearing dates.
The court also ordered the defendants (Telegram Group Inc. & TON Foundation Inc.) not to offer, sell, deliver, or distribute any of the “Grams” as defined in the “Purchase Agreements for Grams” (“Purchase Agreements”) to any person or entity, until the conclusion of the hearing scheduled by the Court for February 18 and 19, 2020 (“Hearing”).
Telegram’s TON Launch Delayed
Telegram offers to delay the launch of it’s TON network, until the spring next year. The project was supposed to be launched by Oct end. The attorneys taking care of the Telegram Group and its wholly-owned subsidiary, TON Issuer Inc. and GRAM token, have filed an application mentioning their client’s proposal to the United States District Court for the Southern District of New York for pausing the work for 5 months until the matter gets resolved.
Reportedly, law firms namely, the Skadden, Arps, Slate, Meagher & Flom are representing the messenger, has asked the court to release Telegram from the groundless obligations to meet several demands by SEC.
Telegram Reached To Investors
Telegram has reached out to the investors who took part in the last year’s fundraising rounds and updated them about the surprising TRO filed by the SEC, on the sale of its GRAM token in the U.S.
Purportedly, in the recent communication with investors, the establishment invited them to share their stance on the proposed extension of the TON project launch, which is set before 30th, April 2020. The company would proceed with a new launch date if, the majority of investors agree.
Telegram requested the investors to decide before Oct. 23, regarding the extra time. Should such a proposal pass, TON would tentatively launch on April 30. However, if the majority of investors are not agreed, and any kind of disagreement happens with the start date, then investors would be partially compensated by Telegram and fewer gram tokens would be issued at launch.
Tags: Cryptocurrency News, Blockchain News, Regulation, U.S., Telegram, TON, Investors, TRO, GRAM token, Court, Hearing, Security