‘Force Majeure’ clause saves Telegram from refunding money to investors

Investors in Telegram’s cryptocurrency ICO may not get back their funds in case if Telegram plans to postpone the issuance of coins. The “force majeure” clause, which covers natural disasters, terrorist threats, and eruption war, also includes legal or regulatory hurdles. The deadline for Telegram to issue its coins is 31st October.

Earlier US Security Exchange Commission obtained a restraining order from the US SEC to halt Telegram operations in the US. As reported earlier, Telegram is considering to postpone the launch of its cryptocurrency. In a note to investors Telegram wrote that they were having discussions with the SEC from the last one year and were surprised that they decided to file the complaint.

However, it was reported that if Telegram fails to launch its cryptocurrency by the end of this month, the company might have to refund money back to investors. But the clause Force Majeure protects the company from doing so. This clause includes emergencies like terrorist threats, an eruption of war, and legal or regulatory uncertainties.

US SEC, in its complaint, alleged that the company was involved in an unlawful offering of securities. Telegram had raised over $1.7 billion in its ICO last year. US SEC obtained a temporary restraining order on the issuance of Gram token. The court will hear the case on 24th October.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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