To end its legal battle with the U.S. regulator, Telegram agreed to pay a fine of $18.5 million over TON blockchain regulation.
According to a court document published on June 25, 2020, following the cancellation of its TON blockchain project, Telegram will pay a fine of $18.5 million to the Securities and Exchange Commission (SEC), Coindesk reports.
The publisher of the famous mobile messaging application will also have to inform, within 45 days, the American regulatory office if it decides to issue a crypto-money within the next three years.
The document also states that Telegram is responsible for the return of $1.22 billion as part of its ICO launched in the winter of 2018, which raised $1.7 billion.
Last May, following the abandonment of the project, the company announced that it would reimburse the investors up to 72%, or 110% in the event that the latter would wait until 2021. 4 out of 5 investors would have decided to recover part of their investment without delay.
Unfortunately, we were unable to launch the TON platform before our deadline due to the preliminary injunction ordered by the Court, and therefore had to return the remaining funds to the buyers under our contractual agreements. As we see only limited value in pursuing the matter, we welcomed the opportunity to resolve it without admitting or denying our liability. Today’s proposed settlement reconfirms our commitment to return the remaining funds to the purchasers under the purchase agreements. We have already repaid more than $1.2 billion to the purchasers, either directly or in the form of loans,” commented Telegram founder Pavel Durov.
Telegram now has one month to pay the penalty to the SEC and up to four years to repay the investors.