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Telegram vs SEC: $ 18.5 million penalty for Telegram's ICO

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The battle between Telegram and the Securities and Exchange Commission (SEC) finally seems to be coming to an end. After giving the final blow to the TON project, the SEC finally decided and claimed Telegram $ 18.5 million in civil penalties.

The end of the TON blockchain

The announcement fell in May, the SEC ruled against the TON project and its GRAM token, leading to its loss. The $ 1.7 billion ICO was deemed to be “an illegal sale of security tokens”.

Thus, the threat of full repayment from investors hovered over Telegram. As a result, the TON project and its GRAM token have been entirely abandoned.

"Unfortunately, we were unable to launch the TON platform before the deadline due to the court-ordered preliminary injunction, so we had to return the remaining funds to buyers under our contractual agreements," said Pavel. Durov, CEO of Telegram.

The end of the story

The Telegram court debacle is coming to an end with the publication of an agreement between the company and the SEC.

Thus, according to the agreement, Telegram undertakes to reimburse $ 1.224 billion out of the $ 1.7 billion raised during the ICO. This share represents “the unspent portion of funds raised from investors” minus funds that have already been returned to investors.

“The agreement proposed today confirms once again our commitment to reimburse the remaining funds to buyers under the purchase agreements. We have already reimbursed more than 1.2 billion dollars to buyers, either directly or in the form of loans. "Has said Pavel Durov

In addition to the funds to be repaid, Telegram will also have to pay $ 18.5 million in civil penalties. Finally, the company agrees to notify the SEC 45 days before, if it wants to try a token sale again.

It would seem that this is the final clap for Telegram in the blockchain ecosystem as declared by its CEO:

"We look forward to continuing our other innovation projects and tracks, and we hope that the regulatory environment for blockchain technology in the United States will become more favorable for others in the future."

Thus ended this judicial breakdown, in action since last October. Telegram is even doing quite well, with only $ 18.5 million in penalties, compared to the $ 24 million EOS had to pay in similar circumstances.

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 6/30/2020

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