Cloud-based instant messaging app Telegram is planning to push back the release time of its Telegram Open Network (TON), regarding numerous unresolved matters with the US SEC.

Specifically, on October 16, Telegram made an announcement to its investors, revealing the decision to postpone the deadline to April 30 next year. 

The new feature introduction was formerly scheduled to be out in October 2019, but the US SEC has intervened, accusing its $1.7 billion dollar token offering does not meet legal requirements. Telegram has been able to secure the huge amount of fund via placing TON’s native Gram tokens for purchasing, through 2 separate rounds with top-tier investors. 

In February last year, Telegram filed a document to acquire a Form D filing – a form allowing one firm to sell securities without a registration granted from the SEC. 

The above-mentioned benefit is only effective under the circumstance of said firm sell the securities solely to investors. However, because investors involved in Gram tokens can place their assets for re-selling, the SEC deemed Telegram violating the law of the filing. 

Telegram further claimed that in order to change the release date, Telegram needs to obtain the permission of holders of a majority of purchase amounts paid to Telegram, in accordance with the Stage A purchase agreements.

This also means that one particular group of investors can put their votes in changing the introduction timeline, while the other party cannot.  

“In the event that only one group approves the extension, then that group’s purchase agreements will remain in place while the other group of agreements will be terminated. In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”