Liquid, a Japanese crypto exchange, has canceled the sale of Telegram’s proposed digital currency Gram.
As reported by Finance Magnates earlier, the exchange became the first to hold a public sale of Telegram Open Network’s (TON) digital token last July. The exchange received funds from the investors and held them in an escrow account until the issuance of tokens on October 31.
However, the delay in the issuance of Gram due to the charges brought by the Securities and Exchange Commission (SEC) has forced the Japanese exchange to cancel its sale.
In an official announcement published last week, Liquid specified cancellation of Gram token sale. It has also initiated a refund to the investors.
“The Gram Token Sale on Liquid has been canceled, and all funds previously held in escrow by Liquid have been returned to Liquid users who participated in the Gram Token Sale,” the exchange noted.
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Per the announcement, the delay of the token issuance has violated the exchange’s terms of services.
“Under the Gram Token Sale Terms of Sale, Liquid is required to return all funds committed by Liquid users in the Gram Token Sale due to the fact that the TON mainnet was not launched by 30 November 2019,” the exchange added.
Investors having high hopes
In its whitepaper, Telegram mentioned that in case of any failure of Gram issuance by October 31, 2019, the company will be obligated to issue a refund to the investors. Though the company was ready for the launch of its blockchain, a lawsuit by the SEC alleging Gram to be unregistered securities forced the company to delay the launch.
Telegram also sought permission from all its investors participated in the two separate token sale rounds for delaying Gram issuance till April.
Meanwhile, on the SEC’s request, the court ordered Telegram to share the financial records of the token sale with the regulator. The two parties will face the court for the next hearing scheduled for February 18-19.