Telegram "force majeure" clause or activated, no need to refund funds due to postponement of network release

Telegram promises that if its blockchain network is delayed, it will return funds to investors, a commitment that may be cancelled due to the “force majeure” clause in the purchase agreement.

The Russian media the Bell pointed out in a report yesterday that the force majeure clause includes not only natural disasters, terrorist threats and war outbreaks, but also legal or regulatory actions of the relevant authorities.

Telegram

The US Securities and Exchange Commission (SEC) this week announced that the Telegram Open Network (TON) ICO worth $1.7 billion is illegal, which could mean that even if Telegram is delayed, it does not need to return funds to investors.

In the purchase agreement leaked in February this year, Telegram pointed out that once TON's native token Gram could not be launched as scheduled on October 31, as long as the relevant participants did not make additional rules, the token contract would be considered invalid and the investor would A cancellation fee was received in US dollars.

In addition to this commitment, the Force Majeure clause states that Telegram “does not need to be responsible to the purchaser for failure or delay (mainline) if:”

"…(d) applicable laws or regulations; (e) actions of government authorities."

In February 2018, the founder of Telegram submitted a "Notice of Issuance of Securities Issues" (also known as Form D) to the SEC for the first round of the company's release, followed by a second such submission in March. Notice.

This exemption rule used by Telegram requires that tokens can only be sold to qualified investors.

However, the SEC is acting on the company because it fears that once these qualified investors get Gram, they will sell billions of tokens to ordinary investors on the open market.

According to reports, TON developers said in a letter to investors that they are evaluating the best way to respond to SEC actions, including but not limited to delaying the launch date of the network, considering the interests of the participants. they said:

"We were surprised and disappointed that the SEC chose to file a lawsuit in this situation. We disagree with the SEC's legal position."

In addition to announcing the illegality of its token issuance, the SEC also issued a temporary restraining order for the issuance of the Gram token. The court hearing will be held on October 24.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

🚀 Moon App Launches $APP Staking for $INJ Ecosystem IDOs! Stake Your Tokens and Secure Your Allocation!

The Moon App, acting as the Layer0 and Launchpad for Injective, offers an opportunity for users to stake $APP and par...

Blockchain

Altcoin Surge: KLAY, CHZ, and BLUR Defy Bitcoin Downtrend 🚀📈

Despite the current trend, altcoins such as Chiliz, Klaytn, and Blur are bucking the trend and demonstrating strong m...

Bitcoin

RFK Jr. and Trump Share Similar Stance on US CBDC

Robert F. Kennedy Jr., a candidate who has shown progressive thinking by accepting BTC for his campaign, has made a b...

Blockchain

Clearpool’s Credit Vaults: Empowering Borrowers in DeFi Lending

Clearpool, a revolutionary decentralized finance (DeFi) lending protocol, has unveiled a game-changing product called...

Market

Bitcoin Rockets Towards $29K as Fidelity Amends Spot Bitcoin ETF Proposal

Bitcoin sees surge in price and trading activity as Fidelity and others make edits to proposals, anticipation for app...

Blockchain

Swiss National Bank Partners with SIX Digital Exchange for CBDC Pilot Project

The Swiss National Bank (SNB) has teamed up with SIX Digital Exchange (SDX) to launch a trial project for a new wCBDC...