Encrypted messaging service Telegram desires to postpone the launch date of its Telegram Open Network (TON) following points with the United States Securities and Exchange Commission (SEC).
According to an investor message seen by Cointelegraph on Oct. 16, Telegram advised buyers that it desires to push again the deadline to April 30, 2020.
The launch was initially set for late October when the SEC abruptly declared its $1.7 billion greenback token providing to be unlawful. Telegram raised the large sum for its new community by promoting TON’s native Gram (GRM) tokens to certified buyers in two separate rounds.
Problems with registration and securities classification
In February 2019, Telegram submitted a Form D submitting, which is used when an organization sells a safety with out registering it with the SEC.
Under Form D, a agency is allowed to proceed with a securities providing with out registering with the SEC, ought to it provide it solely to certified buyers. However, for the reason that buyers in GRM tokens would be capable of resell their property, the SEC thought of this a violation of the exemption.
As such, the fee’s full criticism alleges that Telegram and TON didn’t register their sale of GRM tokens, which the SEC considers securities.
Vote required to maneuver again deadline
In immediately’s letter to buyers, Telegram states that transferring the deadline requires the permission of holders of a majority of buy quantities paid to Telegram relating to the Stage A purchase order agreements. The deadline within the buy agreements from the pre-sale spherical may also be prolonged in the identical method.
However, because of this one spherical of buyers might vote to increase the deadline, whereas the opposite doesn’t. In such an occasion, Telegram states:
“In the event that only one group approves the extension, then that group’s purchase agreements will remain in place while the other group of agreements will be terminated. In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”
Telegram is asking buyers to make their choice relating to the deadline extension earlier than Oct. 23.
The agency is scheduled for a listening to with regulators in New York on Oct. 24, the place it is going to make its case that it was compliant and that the SEC is wrong in its evaluation.