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The long-awaited launch of the cryptocurrency from Telegram’s Open Network (TON) may not occur as anticipated.
TON was expected to go live on 31st October this month. But SEC has filed a lawsuit against the activities of the Network, halting its launch.
It seems SEC is determined to make sure Telegram follows due process before launching their cryptocurrency network.
SEC has accused Telegram of trying to rip off retail buyers with the unlawful sale of its token.
From inception, the TON blockchain was set up to make purchasers relinquish their investment and distribute them to the public.
But SEC, who is there to protect buyers, insists Telegram must follow due process or risk losing all of its tokens.
SEC determined to cleanse the market
SEC is not happy that the TON Issuer sold about 2.9 billion token to 171 investors all over the world. Out of the number, I billion tokens was from U.S purchasers.
According to SEC, Telegram did not comply with the SEC’s regulations in terms of the token registration.
The commission pointed out that Telegram, instead, issued the tokens as securities and failed to provide the right information to SEC.
TON is trying to clarify the whole situation to its investors. It has already sent an open letter to the investors, explaining the problem to them.
It has also let them know how far Telegram has gone to resolve the issue.
In the letter, Telegram reiterated that it has been interacting with SEC since last year to resolve the issue. It also maintained that SEC has responded to them regarding updates on TON blockchain.
According to the letter, Telegram is surprised why SEC has made such an important decision openly.
Currently, cryptocurrency consultants and developers are trying to find how best to resolve the issue.
From the letter sent to the investors, it is almost certain that the Firm is going to delay its cryptocurrency launch to resolve the situation.
How it will affect Telegram
From Telegraph’s letter to the investors, the cryptocurrency launch on October 31 may not be possible.
SEC has already filed a complaint against telegram, and it seems the commission wants to completely shut down TON.
And when Telegram did not accept a subpoena from SEC, the commission decided to take the matter head-on.
It appears there is a strong tension in the air, both from Telegram and its investors. If Telegram fails to handle the situation properly, it may lose the opportunity to launch its cryptocurrency tokens.
More importantly, it may lose the entire cost of the tokens investors are holding.
The battle between SEC and Telegram is getting interesting each day. SEC is making sure the market is free from money-laundering activities.
As such, it is very careful when scrutinizing any public offering. It’s unfortunate that Telegram did not follow due process, or was not aware of the actual due process.
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