Categories: Bitcoin

Russian Court Bans Telegram on Heels of $1.7 Billion ICO

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A Russian court docket has levied an official ban in opposition to messaging app Telegram, simply weeks after its preliminary coin providing (ICO) presale raised almost $2 billion in two personal funding rounds.

Tagansky court docket choose Yuliya Smolina dominated in opposition to Telegram on Friday, siding with communications regulator Roskomnadzor’s request for the authorization to dam entry to the app on the grounds that the corporate had refused to adjust to native legal guidelines.

Intelligence officers with the FSB Federal Security service had repeatedly demanded that Telegram hand over its encryption keys, which might have allowed them to view messages saved in encrypted chats between customers. They claimed that they wanted entry to those keys so they may thwart terrorist assaults.

However, Telegram mentioned that the request was an affront to consumer privateness and refused to conform, resulting in Friday’s court docket ruling.

Telegram founder Pavel Durov mentioned in response to the ruling that the corporate would endeavor to bypass the ban, utilizing in-app strategies to evade the block, which may go into impact at any time. Users might have a VPN to make sure continued entry to the app.

“The power that local governments have over IT corporations is based on money. At any given moment, a government can crash their stocks by threatening to block revenue streams from its markets and thus force these companies to do strange things (remember how last year Apple moved iCloud servers to China),” Durov wrote on his public channel. “At Telegram, we now have the luxurious of not caring about income streams or advert gross sales. Privacy just isn’t on the market, and human rights shouldn’t be compromised out of worry or greed.”

An estimated 9.5 million of Telegram’s 200 million international customers dwell in Russia.

As CLC reported, the corporate just lately concluded the second spherical of its ICO presale, which has up to now been held via a personal placement. The firm has raised $1.7 billion to create the Telegram Open Network (TON), a blockchain ecosystem with a local cryptocurrency referred to as Gram. It is unclear whether or not the corporate will proceed with a public ICO or conclude its providing following the record-setting presale.

Iran, one other authoritarian nation during which Telegram is common, can be reportedly mulling a ban on the app, with officers citing its transition into “an economic platform” that may “undermine the national currency of Iran” as justification for its censorship.

Featured picture from Shutterstock.

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