It is no secret that the Securities and Exchange Commission in the United States has been involved in a number of issues with regards to crypto-based firms or firms that have dealt in some form of digital asset. This involves the era of ICOs when several were shut down by the Securities and Exchange Commission and this also includes the recent issues with both Telegram and Kik that relate to the classification of tokens as either security tokens or utility tokens. This set of issues has not only brought the discussion of token classification to the forefront but has also had a major impact on the businesses themselves.
According to a January 10, 2020 post, the Liquid Exchange has canceled the sale of Telegram Open Network gram tokens and has also returned the money already spent back to investors.
The initial sale took place in July 2019 and the mainnet for TON was expected to launch in October 2019. However, the mainnet has not launched and this is due to the SEC investigation that claims that the original Gram tokens were unregistered security. Due to this lack of launch for the mainnet and the lawsuit, the sale has been canceled.
The official terms of sale also stated that should the mainnet not be launched by November 30, 2019, all funds would be returned to investors and this seems to be the case. The most recent development from the lawsuit is that Telegram has agreed to hand over their bank records which vindicate them from claims that they had mishandled the billions of dollars that were raised in the initial Gram token offering.
As part of the initial agreement, investors were not allowed to swap or sell the tokens until 18 months after the mainnet launch but now it seems that these plans will not be moving forward at all. It should be noted that Kik had, at one point, announced that they would be closing down their messaging platform due to the complications and expenses regarding the SEC lawsuit but have since been able to remain afloat.