Telegram lost another round in court against the U.S. Securities and Exchange Commission (SEC) and now can’t issue the tokens sold during its $1.7 billion fundraising campaign. What does it mean for the crypto industry and other startups that sold tokens?
Telegram, the popular messaging app, has big plans for its blockchain Telegram Open Network, or TON. It also had one of the biggest token sales in history, followed by a huge legal fight over it.
The court battle has been an interesting one, as is the ruling of the judge.
Together with two experienced attorneys, Gabriel Shapiro of BSV Law and Phillip Moustakis of Seward & Kissel, we’re unpacking this process, which is likely to set a precedent for other token sales structured as SAFTs, or simple agreements for future tokens – starting with Kik and potentially followed by many more.
- SAFTs used to be a popular form of fundraising in crypto. What went wrong for Telegram?
- Is there still a chance an ambitious proof-of-stake blockchain will still get launched?
- Is there a safe way to raise money via a token sale or not?
- What are the remaining options for Telegram – and for its investors?
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