The high-profile case around the release of Telegram Open Network’s own cryptocurrency, Gram, is officially postponed. The United States District Court for the Southern District of New York State adjourned the Securities and Exchange Commission case against the cryptocurrency token release.
Telegram’s fate has to wait.
The court decided to take its time as there is a huge amount of materials to review. The case has been adjourned until February 18-19 of the next year.
From the official appeal: “Defendants (i.e. Telegrams) should not distribute, transfer or deliver Gram cryptocurrency tokens to any individual or legal entity until the end of the proceedings on February 18-19, 2020. During the hearing, either party may turn to the court to continue the action or to cancel this decision.”
The prosecution claims that Telegram violated US securities laws by Telegram during its ICO.
Investors are put off
To remind, TON was gearing up for a launch. However, the SEC suddenly intervened just before the planned release of Gram tokens on the TON cloud blockchain platform. This led to a halt in the progress of launching one of the most innovative blockchain platforms in the world and a halt in the pre-sale of Gram tokens.
However, it seems like the SEC couldn’t care less about the innovation per se. The growing dissatisfaction among investors isn’t bothering it either. To remind, many investors worry that Telegram might fail to return the money should the project fall through. Due to this, Telegram has recently begged them for mercy.
Besides, it filed a counterclaim on October 16th. The appeal stated that the company’s native token is completely safe for distribution. It added that the SEC should lift its sanctions. However, the SEC did not give in. On October 17 it filed a new lawsuit in the New York court in the same case.
The platform is in the loop these days. Telegram representatives said they would try to extend the preliminary launch until October 23 — in this case, the official release will occur on April 30.