Cryptocurrency exchange Liquid has canceled the Gram token sale and promises to refund investors who took part in the ICO
Liquid cryptocurrency exchange has canceled the sale of Telegram Open Network’s (TON) Gram tokens, according to a Jan. 10 company post.
SEC legal battle with Telegram
Telegram conducted a token sale aimed at accredited and institutional investors. The token sale reportedly raised $1.7 billion through a SAFT agreement. The SEC, the US financial supervisory authority, issued an ordinance on October 11th asking Telegram to stop developing its TON blockchain. The reason is that it regards the ICO as a sale of unregistered securities.
At the beginning of this year, the SEC then requested from the Durov brothers a report on the spending of the funds obtained with the token sale, a request that Telegram had refused.
Now, thanks in part to the latest order of the Southern District Court of New York (SDNY), which gave Telegram until February 26th to submit the requested financial statements, it appears that Telegram is cooperating with the SEC.
Gram token investors will get a refund
After Liquid specified cancellation of Gram token sale, they also initiated a refund to the investors who participated in the unofficial sale. Per the announcement, the delay of the token issuance has violated the exchange’s terms of services. The terms of sale states that all funds will be returned to the investors should TON fail to launch by Nov. 30, 2019.
Moreover, Liquid reportedly acted as an agent for Gram Asia, allegedly the largest Gram token holder on the continent. In the meantime, however, the Gram Asia website has shut down with the following message:
“This page will be closed. We sincerely thank all who have been part of Gram Asia. All refunds have been completed”