The highly anticipated Telegram token, Gram has had a major setback due to regulatory challenges. This seems not about going away as the Japanese exchange Liquid announced today that it has cancelled planned sale for the Gram. This is due to the inability of the messaging app company to launch its mainnet as promised.
Telegram which raised a massive $1.7 billion from its token sale has been slammed with lawsuit as the Securities and Exchange Commission accused the company of selling unregistered security.
A South District court of the state of New York has demanded that Telegram presents its banking records for examination at a time that the company hoped that its token would have been on exchanges. The initial planned date of the token release was October 31. The release by Liquid stated that all fund held in escrow for investors that planned to purchase the digital asset have been returned to their owners.
The Telegram Open Network (TON) which was supposed to be the blockchain version of the app generated a lot of interest from investors even though a select privileged class was involved. Since the court action, the company has struggled to keep the funds raised by asking investors to grant it a waiver from a clause in the contract that gave a deadline for the mainnet launch date.
The concession already approved by the investors gave the company up to April 30, 2020 to sort out its legal issues and launch the TON mainnet or refund the investors.