Telegram Withdraws Appeal Against US Federal Court’s Injunction That Restricted Gram Token Release

Messaging app Telegram has dropped its plea against a U.S. federal court’s ruling that prohibited Gram issuance. The move has put a stop to the much-awaited TON project.

As per the court documents dated 22nd May, Telegram has backed down on its plea against the federal court’s ruling that stopped Gram token distribution.

The aforementioned move gives the impression that the company behind the popular messaging app has completely abandoned its plans to continue the development of TON blockchain. Recently, Pavel Durov, the CEO of Telegram, declared their “active involvement” with the project was over. He condemned United States regulators for overstretching their authority.

It is to be noted that Telegram’s TON blockchain was declared in 2017. It is a blockchain platform intended to smoothen payments by means of Gram tokens. The blockchain was also intended to host decentralized apps at high scalability points. TON got the attention of regulatory bodies when it raised around 1.7 billion USD in 2 private token sale rounds.

Last year, the United States SEC slapped a charge on Telegram. The regulatory body accused Telegram of violating United States securities law by organizing an unregistered security sale.