SEC Orders Telegram to Pay $18M Fine, Refunds $1.2 Billion to Investors
- Telegram also has to notify the SEC about any future plans to issue cryptocurrencies, digital coins, or digital tokens.

Messaging giant Telegram is a step closer to end its year-long battle with the US regulators over the TON Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term. Today, the U.S. Securities and Exchange Commission (SEC) revealed a proposed settlement with Telegram that involves civil penalties, as well as limitations for any future plans to revive its crypto ambitions.
The order, which Telegram consented to without admitting or denying the findings, imposes a $18.5 million penalty, and requires the social network to disgorge nearly $1.2 billion to refund investors after its scheduled release of the Gram token failed.
Telegram has already offered to pay back investors 72% of their investments immediately after the latest deadline for the launch of the Telegram Open Network (TON) expired on April 30. In the second repayment suggestion, Telegram proposed to pay 110% of the original investment, either in cash, stock or a different cryptocurrency, if investors were ok to leave their money with the company until April 30, 2021.
Telegram gave up on the hard-fought project
The news comes nearly six weeks after Telegram abandoned its TON blockchain project. The decision comes after mounting legal ramifications coupled with the more aggressive stance taken by the US regulators, which ultimately made Telegram executives reconsider their crypto ambitions altogether.
Pavel Durov, the founder and chief executive of Telegram, blasted the court’s ruling that found the resale of Grams into the secondary public market would be an integral part of the scheme that involves US purchasers and thus likely securities laws would apply. The rejection centered around the same claims that supported the preliminary injunction, including whether Telegram could flood United States markets with billions of Grams and if the token itself is a “security”.
Telegram had been fighting the suit since October 2019, claiming its grams are utility tokens, outside the US authorities’ purview. After several months of back and forth, during which the cryptocurrency community speculated regarding the potential outcome of the conflict, the court order got in line with the SEC’s key arguments.
Messaging giant Telegram is a step closer to end its year-long battle with the US regulators over the TON Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term. Today, the U.S. Securities and Exchange Commission (SEC) revealed a proposed settlement with Telegram that involves civil penalties, as well as limitations for any future plans to revive its crypto ambitions.
The order, which Telegram consented to without admitting or denying the findings, imposes a $18.5 million penalty, and requires the social network to disgorge nearly $1.2 billion to refund investors after its scheduled release of the Gram token failed.
Telegram has already offered to pay back investors 72% of their investments immediately after the latest deadline for the launch of the Telegram Open Network (TON) expired on April 30. In the second repayment suggestion, Telegram proposed to pay 110% of the original investment, either in cash, stock or a different cryptocurrency, if investors were ok to leave their money with the company until April 30, 2021.
Telegram gave up on the hard-fought project
The news comes nearly six weeks after Telegram abandoned its TON blockchain project. The decision comes after mounting legal ramifications coupled with the more aggressive stance taken by the US regulators, which ultimately made Telegram executives reconsider their crypto ambitions altogether.
Pavel Durov, the founder and chief executive of Telegram, blasted the court’s ruling that found the resale of Grams into the secondary public market would be an integral part of the scheme that involves US purchasers and thus likely securities laws would apply. The rejection centered around the same claims that supported the preliminary injunction, including whether Telegram could flood United States markets with billions of Grams and if the token itself is a “security”.
Telegram had been fighting the suit since October 2019, claiming its grams are utility tokens, outside the US authorities’ purview. After several months of back and forth, during which the cryptocurrency community speculated regarding the potential outcome of the conflict, the court order got in line with the SEC’s key arguments.