The investors that raised the funds for the Telegram Open Network have agreed to extend the deadline for the launch of the mainnet to April 30 2020. This followed the emergency action against the messaging company by the Securities and Exchange Commission (SEC).
Forbes Russia reported that the launch due by this October had to be extended despite initial agreement between Telegram and the investors. A new agreement leading to the extension would enable the company clear the legal hurdle placed on the path of the mainnet launch by SEC.
With the extension, Telegram has extra six months in which to prove that its token does not breach US securities law. SEC announced the emergency action against the company’s token on October 11 with the network mainnet due for launch on October 31.
The SEC had claimed that Gram, the Telegram Open Network internal currency violated securities law of the US considering that citizens of the United States participated in the private sale that grossed $1.7 billion in the biggest token sale till date.
The initial agreement between TON investors and the company stipulated that the mainnet must be launched by October 31 or the investors get refunded, but with the new concession, the company has until April 30 to convince the court that the token sale did not breach US securities law.
An email sent by Telegram stated that if the investors had voted for refund, it would have resulted in the refund of 77 percent of the funds raised during the private sale.
The hearing for the suit between Telegram and the Securities and Exchange Commission has been slated for February 18 and 19. Meanwhile, the judge, P. Kevin Castel has ordered that the token should not be distributed.