Telegram challenged a court decision banning the issuance of Gram tokens

Telegram Messenger Appeals Decision of the Court for the Southern District of New York on a Temporary Banplanned distribution of Gram tokens.

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Judge Kevin Church agreed withSEC's argument is that Telegram sold unregistered securities and issued a verdict in favor of the regulator. Defendants appealed to the US Court of Appeals for the second circuit.

SEC sued last Octobera statement accusing Telegram Group and TON Issuer Inc of violating the Securities Act. The regulator demanded an unlimited injunction on the project and a decision on the return of money to investors.

Due to the lawsuit, the launch of the Telegram Open Network (TON) blockchain platform was postponed from October 31 to April 30, 2020.

Telegram lawyers made attempts to get the court to dismiss the SEC claim, removing Gram from the definition of a security, but to no avail.

Telegram still had the opportunity to fileappeal, the decision made by Judge Church, which the company took advantage of. However, some experts believe that there is little chance of success and Telegram will have to return funds to TON investors. Others suggest that the SEC may ultimately be limited to a fine, and the company will continue to implement the project.