Telegram’s court case against SEC (U.S. Security and Exchange Commission) that has been on for several months has finally been laid to rest.
Telegram decided to bury its matches against the regulators after halting its appeal against a ban imposed on its TON blockchain project’s tokens.
Telegram’s court case against SEC, how it began
The Telegram, SEC face-off began since 2018 when the messaging app giant raised over $1.5 billion in a private token sale to develop TON, a blockchain network for Telegram. SEC put the project launch on hold weeks to when it was supposed to launch, citing that the project violated certain regulatory policies.
Cryptopolitan reported earlier that SEC claimed Telegram did not register the sale of Gram token, the firms crypto that backs the TON blockchain project. SEC claimed that instead, Telegram filed for Form D that bypasses the need to register securities with the SEC but has its restrictions. This marked the beginning of Telegram’s court case against SEC.
For that, SEC had to stop the TON project claiming that the project placed no restrictions on initial investors from reselling their assets.
Both institutions have been at the case for around six months now till the messaging app firm decided to let sleeping dogs lie on Friday and let go of the Telegram’s court case against SEC. The case has been heard in the U.S. Southern District Court in New York, where the verdict was that Telegram should not launch the token as instructed by the SEC.
Telegram decide to appeal the judgment until Friday when it filed a stipulation withdrawing this appeal.
Telegram CEO faults court for TON’s extinction
The CEO and founder of Telegram, Pavel Durov, is faulting the U.S. court for the TON project end. He claims outside the U.S., people of other countries do things on their own but rely on America for technology and finance.
He says that the TON project was going to change the way people keep value and exchange information. Durov claims that the idea backing TON was ultimate decentralization and said SEC did not like the idea.