What happens to the Telegram blockchain?

After postponing its blockchain project for another year last week, Telegram is now telling US investors to leave the project immediately, with 72% of the amount invested back.

In a new letter to Telegram Open Network (TON) investors on Monday, the company said US investors cannot wait another year and are not eligible for a 110% loan repayment in April 2021.

“Unfortunately, given your status as a U.S. investor, and based on later discussions with the relevant authorities and our attorneys, we made the difficult decision not to use this option with you because of a precarious regulatory relationship in the United States, “ Telegram said in the letter, a copy of which was received from Russian media The Bell.

An independent source familiar with the matter confirmed to The Block that US investors would not have the loan option.

Two choices


Last week, Telegram offered two options for all investors: either take 72% of the compensation immediately, or wait until April 2021 and get 110% by converting your initial investment into loans. The Telegram plans to cover the debt by selling equity.

It is not yet clear how many non-US investors have agreed on the loan option.

Those who chose this option also had the choice to receive GRAM tokens “or potentially another cryptocurrency on the same terms as those in their original purchase agreements.”

“Unfortunately, based on more recent discussions with the relevant authorities and our board, we have made the difficult decision not to pursue an option involving GRAM or other cryptocurrency because of its uncertain approval by the relevant regulators.”

Delays


Initially, Telegram planned to launch the TON blockchain and GRAM tokens in October 2019, but this delayed until April 2020 by the US. The Securities and Exchange Commission (SEC) has filed a lawsuit against the Telegram for selling “tokens ” illegally and for allegedly violating the securities law.

Telegram raised $ 1.7 billion in 2018 by pre-selling its GRAM tokens.

Last week, Telegram further delayed the start of its blockchain project for another year until April 2021 after a US judge ruled that the company could not continue the project until their SEC case was resolved.