The encrypted messaging giant Telegram has received a $100 million compensation request from Da Vinci Capital for its investment messaging platform’s $1.7 billion initial coin offering (ICO) to build the now-shelved Telegram Open Network (TON), according to the Forbes Russia report. Though not officially confirmed, the investor sent the notice to Pavel Durov, CEO of the encrypted messaging platform, vice president Ilya Perekopsky, and other top managers and lawyers of the TON project.
The investor plans to take legal action if not compensated.
The investor reportedly gave the messaging platform two weeks to compensate the amount, and else they will move to London court against the messaging company. Telegram had raised $1.7 billion in closed-door ICO in 2018 for its ambitious blockchain project, which never saw the day of the light. Despite great demand from investors, the project came under the scrutiny of the United States Securities and Exchange Commission (SEC), which categorized TON tokens as unregistered securities and asked the company to return the investment. After a long legal battle, Telegram finally decided to scrap its blockchain project last year.
Da Vinci Capital was one of the major investors in the ICO.
As for TON investors’ compensation, Telegram offered two options – either to exit immediately with 72 percent of their initial investment or loan the amount to Telegram and receive 110 percent at the end of April 2021. US investors, however, were given only the first exit option. Da Vinci Capital was one of the major investors in the ICO and agreed to purchase $72.1 million in TON token with its Disruptive Era Fund. The US regulator pointed out that the investor transferred $45.4 million to Telegram later in 2018.