TON Developers Reached Out to Investors Following the US SEC’s Restraining Order

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Last week, the United States Securities and Exchange Commission had successfully obtained an emergency restraining order against Telegram and affiliated TON network. Allegedly, the $1.7 billion token offering that was conducted by the messaging app company in the US market was unregistered and thus was deemed “unlawful” by the commission. Immediately, TON developers shared their disappointment with the US SEC action and have taken a firm stand against the allegation. 

 

The temporary restraining order had given the commission the power to halt the network’s operation. Notably, TON Blockchain is about to launch on October 31. However, the industry is now waiting for updates as to whether the rollout would happen or not since an initial court hearing had been scheduled on October 24. 

TON developers immediately reached out to investors, explaining in a letter that for the past 18 months, they’ve been trying to get the US SEC’s feedback about the TON Blockchain. However, the commission failed to provide its response. Telegram and TON revealed that they were extremely surprised by the commission’s abrupt action. 

In the letter, Telegram said that they are already assessing the situation and would find the best solution that would deliver the best interest of concerned parties. They also added that they are carefully evaluating if they would push through with the launch or delay it until the allegations had been addressed and resolved. 

Nathaniel Popper, a tech reporter for the New York Times, revealed through a tweet some of the high-profile investors who took part in Telegram’s “unlawful” $1.7 billion initial coin offering. He mentioned Sequoia, Benchmark, and Lightspeed. According to Popper, these firms have initially thought that Telegram’s cryptocurrency project would go on unnoticed by regulators. Now, they have attracted the attention of the commission to themselves. 

 

As reported yesterday, Telegram had already updated its private channel for the network’s investors. The previous posts about the forthcoming launch had been deleted. Ironically, amidst the escalating regulatory issues, the company confirmed that it would take a temporary break. 

It’s worth noting that crypto investors and companies are criticizing the US SEC due to its confusing stance and lack of clarity over crypto assets and ICOs. In September, the Chairman of the commission, Jay Clayton, received a letter from the US congress. A consortium of lawmakers was asking the commission to release a new guidance that would provide more clarity to the participants of the crypto industry. 

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