Telegram Lawyers Withdraw The Appeal
By official information, Telegram representatives withdrew the appeal against the court decision to ban the sale of Gram tokens. The appeal was withdrawn from the court of the Southern District of New York at the end of last week.
Gram token sale injunction
Recall, on March 24, 2020, at the initiative of the US chief financial regulator, the court issued a temporary ban on the issuance and sale of Gram tokens in the USA. The very next day, March 25, Telegram lawyers filed an appeal and were going to fight in court. But the appeal was withdrawn last Saturday, May 23. The official documentation says this was decided with the consent of both parties.
Does SEC jurisdiction apply to the whole world?
In early April, the court introduced a new ban, which meant Telegram had no right to issue Gram tokens even for non-US investors. The company's lawyers tried to appeal this decision, but the court rejected all attempts.
The SEC believes that the sale of SAFT contracts even outside the USA would still lead to the sales of tokens in the United States of America, which would violate the country's federal law.
On the day of the second deadline, April 30, the company announced that there would be no launch and proposed investors to wait another year. But on May 12, 2020, Pavel Durov officially announced the cessation of work on the project. American investors will receive 72% of their deposits, and the remaining investors will get 110% during the year.
Earlier, we wrote that Durov officially announced the closure of the Telegram Open Network. Despite the fact that lawyers called this outcome the only solution to resolve the conflict with the SEC, some TON investors were going to sue Durov.