Telegram is now forcing United States-based Gram token investors to take a 72 percent refund and exit the TON blockchain project.
In a letter sent to the investors on Monday, the encrypted messaging platform has also retracted from last week’s offer to pay investors in Gram tokens at all.
Having originally planned the launch of TON for last October, Telegram was forced to delay the token’s release twice – now, the company is expected to put the blockchain project live by next April.
According to its previous commitment, the company is obliged to repay all Gram token investors due to the failure in its launch.
Telegram, however, updated its agreement, asking the investors to exit the project with 72 percent of their initial investment or stay for one year and keep their investment with Telegram as a loan. They will receive 110 percent of their investments either in Gram token or in any other cryptocurrency.
Now, the messaging company has squashed its offer to make the payment in a digital currency.
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“Unfortunately, based on more recent discussions with relevant authorities and our counsel, we have made the difficult decision not to pursue an option involving grams or another cryptocurrency due to its uncertain reception from the relevant regulators,” Telegram wrote to investors.
The company is still offering the loan option to the investors, however, the final payment will no longer be made in crypto.
It is not clear yet if the messaging company will continue developing the blockchain project as the way of the distribution of Gram tokens is now in question.
US investors messed up the project?
Notably, the offer of keeping the money with Telegram as a loan is only available for non-US investors, as the company has decided to immediately buy out US investors.
“This offer is only being made available to offerees outside the United States who are not U.S. persons within the meaning of Regulation S under the U.S. Securities Act of 1933,” Telegram added.
The decision came as the US Securities and Exchange Commission (SEC) dragged Telegram to court for offering unregistered securities to US investors.
The company might sell its equities to raise the funds necessary to repay the investors.