Telegram’s TON token has been deemed a breach of US securities regulation

American investors face a single option anchored to the U.S. Securities Act of 1933: a 72% refund. International investors choose between 72% now or 110% in April 2021. Telegram had planned token-based repayment for both groups.

Regulatory uncertainty about cryptocurrency drove the reversal. Telegram's correspondence stated: "Unfortunately, based on more recent discussions with relevant authorities and our counsel, we have made the difficult decision not to pursue an option involving grams or another cryptocurrency due to its uncertain reception from the relevant regulators."

The company has stumbled repeatedly on TON's launch date. It missed its April 30 debut—the second postponement. The SEC has challenged the token sale as violating U.S. securities law. In 2018, Telegram conducted what was then the largest initial coin offering on record, raising $1.7 billion for the TON project. EOS later surpassed that milestone with a $4 billion offering that concluded in June 2018.

American investors must declare their residency status by 5 p.m. UK time on May 5, 2020. Telegram expects signed documentation returned by May 11, 2020.

Investors willing to leave their holdings with Telegram can expect 110% returns within a year. The company still targets a 2021 launch for TON, contingent on resolving its SEC dispute.