According to the Bloomberg report, the popular encrypted messaging app with about $300 million users is planning to postpone the launch of its much-anticipated cryptocurrency. Telegram raised more than $1.7 billion in its Initial Coin Offering in 2018, which SEC alleged was unlawful. Telegram told investors that it’s evaluating ways to resolve SEC’s concerns, including potentially delaying the issuance of the tokens beyond its this month’s deadline.
SEC reported that the company sold 2.9 billion tokens worldwide, with more than 1 billion to US investors. SEC further alleged that Telegram did not register the offering with securities regulators. Earlier, the New York Times reported that if Telegram does not issue its token by the end of this month, the company might have to return funds to investors.
Telegram told investors that they have been having discussions with SEC for more than a year regarding the TON project. The company added that they were surprised and disappointed that the SEC chose to file the lawsuit under these circumstances.