Telegram has withdrawn its appeal against the ban on issuing Gram tokens

The company appealed the court decision in March, but then the founder of the messenger, Pavel Durov, announced the termination of work on the blockchain project

Telegram has withdrawn an appeal against a court order banning the distribution of Gram tokens as part of proceedings with the US Securities and Exchange Commission (SEC). The decision was supported by both parties, the withdrawal was carried out using the standard form based on rule 42.1 — “leaving without consideration”.

The appeal was sent in March after a court banned Telegram from issuing Gram tokens.  The court ruled in favor of the SEC, which argued that the Gram tokens were unregistered securities. The court also ruled that Telegram cannot issue tokens even outside the United States since this will give US citizens the opportunity to buy these tokens outside the country as well.

The founder of Telegram in an American court said that people outside the US can vote for their presidents and elect their own parliaments, but they are still dependent on the US when it comes to technology and finance.

On May 12, the founder and CEO of Telegram Pavel Durov announced the termination of work on the blockchain project. He accused the US court of sentencing the TON project before it could be successfully implemented. Investors were offered to return 72% of their investment or sign a loan agreement with a return of 110% in a year.

After that, TON investor Vladimir Smerkis said that the majority of ICO participants are inclined to file a lawsuit against Durov. Smerkis allowed an option in which the Telegram team will need to make concessions to investors and reconsider the option of paying out funds.

Let’s remind that on April 1, Federal Judge of the Southern District of New York, Kevin Castel, rejected Telegram’s request to clarify the possibility of distributing Gram tokens bypassing American investors.