📜 The Beginning – Telegram’s Bold Crypto Vision
In 2018, Telegram, the popular encrypted messaging app, announced its ambitious plan to launch a blockchain network called Telegram Open Network (TON). The project aimed to integrate a decentralized economy within Telegram, allowing users to send money privately, outside government control.
To fund TON, Telegram raised $1.7 billion through a private ICO (Initial Coin Offering), selling Grams, the network’s native token, to investors. The ICO was structured as a SAFT (Simple Agreement for Future Tokens), a legal workaround designed to avoid SEC scrutiny.
🚀 The Promise – What TON Was Supposed to Be
Telegram envisioned TON as a high-speed, scalable blockchain that could:
✔️ Process millions of transactions per second
✔️ Enable decentralized applications (dApps)
✔️ Integrate directly into Telegram Messenger
✔️ Provide financial privacy for users
TON was seen as a direct competitor to Ethereum, with Telegram’s massive user base giving it an edge.
⚖️ The SEC Crackdown – Why Telegram’s ICO Failed
In October 2019, the U.S. Securities and Exchange Commission (SEC) filed an emergency lawsuit against Telegram, arguing that the $1.7 billion ICO was an illegal securities offering.
🚨 Key SEC allegations:
✔️ Grams were securities, not utility tokens.
✔️ Telegram failed to register the ICO with the SEC.
✔️ The SAFT model didn’t bypass securities laws.
✔️ Telegram planned to flood U.S. markets with unregistered tokens.
A New York judge sided with the SEC, blocking Telegram from launching TON. Facing legal pressure, Telegram abandoned the project in May 2020.
💰 The Aftermath – What Happened to the $1.7 Billion?
✔️ Telegram returned most of the funds to investors.
✔️ Some investors accepted a 72% refund, while others chose to wait for future compensation.
✔️ Telegram paid a $18.5 million fine to the SEC.
✔️ TON was revived by independent developers, now known as The Open Network (TON).
🔮 The Possibilities – Could Telegram Try Again?
✔️ TON still exists, but Telegram is no longer involved.
✔️ Telegram might explore crypto again, but under stricter regulations.
✔️ The SEC’s crackdown set a precedent, making future ICOs riskier.
💥 The Takeaway – A Warning for Crypto Projects
✔️ Regulation matters – The SEC won’t allow unregistered ICOs.
✔️ Big ideas need legal backing – Even billion-dollar projects can fail.
✔️ Crypto is evolving – TON’s failure shaped how new projects approach compliance.
You can read more about Telegram’s failed ICO on Decrypt and the SEC’s official statement here.
