The US Court ordered Telegram to pay a civil penalty of $18.5 million to the SEC within the next 30 days for violating the securities laws for conducting illegal Initial Coin Offering.
The US court also ordered the disgorgement of the $1.7 billion that was raised in the ICO in 2018, asking Telegram to return 72% of the ICO amount as agreed in the ICO contract in the case the project is not launched. Telegram had reported that the US investors would receive 72% of their investment back, and the non-US investors have the option to defer their payment for one year and receive 110% of their funds back.
Earlier, Telegram had decided to not go ahead with its blockchain project TON after a legal battle with the SEC for over six months. The US court reasoned that if TON is allowed to distribute tokens outside the US even then the US citizen would be able to access Telegram’s cryptocurrency and that is why it ruled that the company can not issue its token even outside the USA.