Russian private equity fund Da Vinci Capital is currently in a legal dispute with messaging app Telegram for issues related to refund of investments in the Telegram Open Network (TON). Da Vinci Capital files a lawsuit and the case hearing will be in London.
In an interview with RBC TV station, Managing partner Oleg Zhelezko, said: “The reason for the lawsuit was that the refund process was not made completely correctly. The refund offer only arrived 24 hours before the deadline. As a result, it was difficult to analyze the documents and form an appropriate decision.” He added that “The communication behind the refund process was conflicting and it was very difficult for investors to make the right decision about whether to take the money back or convert it into credit.”
Reportedly, Da Vinci Capital investors sent a notice to the Telegram’s executives in February asking for a refund of $20 million. Also Da Vinci Capital also contacted its management team. However, all attempts to amicably resolve the dispute were turned down. This led to the inevitable decision of a lawsuit.
After an investigation by the U. S. Securities and Exchange Commission (SEC) in 2020, which stated that Telegram Open Network (TON) had not registered as a security according to law. Telegram was compelled to shut down its TON, which it did so begrudgingly.
Meanwhile, Telegram was asked to Return $1.2 Billion to Investors and Pay $18.5 Million Penalty to Settle SEC Charges on or before April 30, 2021. Telegram founder Pavel Durov, in a lengthy post, derided the decision and said that it could not make the deadline. Telegram’s final decision was to return 72% of investors’ funds or choose to keep it and return 110% of the investment by the deadline of April 30, 2021. Also, Telegram agreed to pay a fine of $18.5 million.
The SEC investigation of Telegram was a major talking point in 2020, and it highlighted the tough stance that it was taking against some blockchain projects. More recent remarks from the SEC, as well as from other agencies, indicate that it will continue to monitor the market closely.
However, there has been no report stating whether or not Telegram met the deadline.