Telegram is seeking to cut a deal with investors in its TON blockchain project as it prepares to battle with the U.S. Securities and Exchanges Commission (SEC). With the SEC having obtained a restraining order barring the launch of the TON network, Telegram is seeking to move the launch date to 2020, and it’s calling on its investors to give the go-ahead.
In an email to investors who participated in the second of the two $850 million private fundraisers, the messaging company revealed that it had intended the launch of the TON network in late October. However, the SEC’s lawsuit had made the timing unachievable.
Telegram made it very clear that it would fight back against the SEC, stating, “We disagree with the SEC’s legal position and intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other governmental authorities in advance of the launch of the TON network.”
According to the email, as reported by CoinDesk, the company believes that the extended time will be beneficial to the developers in the TON network, giving them more time to create applications that will run on the network.
For Telegram to extend the launch date, however, it has to have to the consent of the investors. Adding to the intricacies is that the two rounds of investors—those who invested in February 2018 and those who did a month later in March—will have to approve the extension separately. This means that it’s possible for one group to approve and for the other to decline.
Telegram is prepared for such an eventuality, with the company stating, “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.”
The investors will have until October 23 to make known their stand. If the majority decides not to approve the extension, they’ll receive up to 77% of their money in line with the terms and conditions of the investment.
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