Telegram shuts down its cryptocurrency operation

Telegram shuts down its cryptocurrency operation

After years of drama with the SEC, Telegram is calling it quits on its crypto-targeted subsidiary, Telegram Open Network (TON).

“Telegram’s active involvement with TON is over,” wrote Pavel Durov, founder and CEO, in a press release on his channel. “you may also see – or may have already seen – websites the usage of my title or the Telegram emblem or the ‘TON’ abbreviation to advertise their projects. Don’t consider them along with your cash or knowledge.”

TON used to be a blockchain platform designed to provide decentralized cryptocurrency to somebody with a cellphone, in the same style to Facebook’s Libra mission (which has additionally faced important scrutiny).

Ultimate October, the SEC ordered Telegram to halt sales of its cryptocurrency (known as Gram) after it didn’t sign in an early sale of $1.7 billion in tokens prior to launching the network. The price range were raised in a chain of what Telegram billed as pre-ICO offerings again in 2018, though the company ended up canceling the much-hyped ICO due (partially) to increased SEC scrutiny.

Durov spoke out towards the ruling in his declaration, arguing that American courts shouldn’t have the facility to forestall the sale of cryptocurrency past US borders, and he urged others to take in the decentralization struggle in Telegram’s stead. “This struggle could be probably the most essential fight of our generation,” he wrote. “we hope that you just be triumphant where we now have failed.”

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