The US District Court for the Southern District New York has forbidden Telegram from distributing, selling, delivering or offering any “Grams” until the next year as the hearing has been postponed to the 18th and 19th of February next year.
SEC’s attempt for a preliminary injunction of Telegram’s blockchain and crypto initiative might actually trouble the company as Telegram promised their investors that their money will be returned if TON is not released in October.
The Securities and Exchange Commission asked Telegram to halt its operation as the company allegedly carried out an illegal ICO. The SEC wanted to conduct investigations into the matter and look into the $1.7 billion token selling incident which they called “illegal” as the ‘securities’ selling wasn’t registered. Telegram tried its best by registering a counterclaim in the court and by requesting to deny the preliminary injunction as their tokens were not securities and were aimed to become commodities. According to Telegram, the SEC knew about their TON launch for the past 18 months and they decided to surprisingly intervene just before the launch of their blockchain platform. They also mentioned the issue of reimbursement to the court in their filing. They stated:
Despite the SEC knowing for 18 months that if the TON Blockchain did not launch by October 31, 2019, Telegram would be obligated under its agreements with private purchasers to return the funds it raised, the SEC (i) never requested that Telegram delay the launch of the TON Blockchain; (ii) never advised Telegram of its intention to seek injunctive relief; and (iii) waited until the eleventh hour to file an ex parte application to enjoin Telegram’s launch.
The court followed legal procedures instead of giving any party an upper hand and delayed the hearing to a later date earlier next year. Until then, Telegram is not allowed to bring their tokens to the market. The court announced:
“IT IS ORDERED that Defendants shall not offer, sell, deliver, or distribute “Grams” to any person or entity, until the conclusion of the hearing scheduled by the Court for February 18 and 19, 2020 (“Hearing”), except upon further order of the Court or agreement of the parties. At the Hearing, any party may move the Court for the continuation or dissolution of this Order.”
Telegram, however, has requested its investors for a delay in the launch date, that would postpone the launch to April next year. If the voters vote in favor of the delay. Telegram might be safe from any reimbursements.