Telegram’s ongoing saga with the U.S. Securities and Exchange Commission isn’t ending anytime soon. After the regulatory body swooped in with a last minute restraining order, Telegram has been embroiled in an increasingly strenuous legal battle to get the Telegram Online Network (TON) over the line. The blistering pace at which the latest developments have occured shows no sign of slowing, with the court hearing pushed back to February 2020 and investors voting against a refund of up to 77% of their initial investment.
Since the hammer of the SEC came down on Oct. 16, the rights of TON investors have taken center stage. While Telegram followed the SEC’s ban with a forthright legal challenge, what might happen to investors from the company’s $1.7 billion private sales round created heated discussion. A leaked copy of the sales contract signed by investors revealed a “force majeure,” a clause that indicated the firm might not be obliged to refund investors in the event of regulatory changes.