It looks as if the Telegram blockchain project is about to hit another wall. According to a local Russian news site, at least 10 large investors are ready to ask for their funds back.
Telegram Blockchain Faces Further Problems
According to Yakov Barinsky, the head of Russian crypto investment firm Hash CIB cited in TASS, Telegram investors have had enough. He says that at least 10 major investors in the Telegram Open Network (TON) are now looking at asking for a refund. Barinsky stated:
What I see now among various investors is that many, at least 10 investors with whom I spoke, are inclined to take away 72% of the invested funds.
Investors in the Telegram blockchain project have been reasonably patient up until now. As the giant social media company locked horns with the SEC, they were previously granted two options.
They could either request a refund of 77% of the amount they invested or wait for a further six months for the tokens to be distributed. Investors initially chose the first option, meaning that the GRAM tokens would be released in April. However, it looks as if they’re steadily changing their minds.
The news comes after an injunction earlier this week by a federal judge in New York. The judge ruled that the distribution of gram tokens would violate U.S. securities laws. This Court ruled:
Considering the economic realities under the Howey test, the Court finds that, in the context of that scheme, the resale of Grams into the secondary public market would be an integral part of the sale of securities without a required registration statement.
This means that investors will certainly have to wait a lot longer than six months for their GRAMs. If, indeed, they ever see the light of day.
Current Economic Climate Not Helping
To add salt into Telegram’s wounds, the current economic crisis certainly isn’t helping. As investors are desperately seeking the safest place for their funds right now, locked up in an uncertain Telegram blockchain project doesn’t seem to be the answer. Barinsky commented on the refund option:
Considering what is happening in the financial markets, this offer now looks like much better than in October.
To be fair, all isn’t completely lost for Telegram yet. A preliminary injunction is, after all, just that: it is not a final order and it’s most likely that Telegram will appeal. However, the outcome of that is anyone’s guess. The only thing that looks certain is that this whole ordeal is likely to carry on for a lot longer–and investors are looking less likely to wait.
Do you think Telegram will pull through its ongoing legal battle? Add your thoughts below!
Images via Shutterstock