The encrypted messaging app Telegram in a letter to Telegram Open Network investors on Monday said that American investors can’t wait for another year and are not eligible for a 110% loan refund option in April 2021. According to the Russian news publication The Bell, Telegram said in the letter that, unfortunately, given the states of investors from the United States and based on later discussions with the relevant authorities and the lawyers, they have concluded that the 110% refund option is not valid.
US investors excluded from the 110% refund because of uncertain US regulations.
According to the letter sent by Telegram to its US investors, the company is not extending its 110% refund offer to US investors due to an uncertain regulatory attitude in the country. Telegram is currently in a legal battle with the US SEC over its alleged illegal ICO in 2018. Telegram had raised over $1.7 billion in its ICO. The US SEC filed the lawsuit against the encrypted messaging giant just a few weeks before it was supposed to launch its token in October last year.
Telegram continues to face legal trouble for its blockchain project.
The encrypted messaging giant has been facing legal troubles from the US regulators over its blockchain project and cryptocurrency. The US court had earlier said that Telegram would not be allowed to issue tokens in the US or any country. Now, Telegram has further delayed the launch of TON project by one more year to April 2021, after a US judge ruled that the company cannot go ahead with the project until its case with the US SEC is resolved. However, the company offered two choices to all investors. The first choice was either to take a 72% refund immediately, and the second choice was to wait until April 2021 and get 110% by converting original investments into loans. Telegram will cover the debt by its equity sale.