Telegram, an encrypted messaging application in the midst of an Initial Coin Offering (ICO) set to secure over a billion dollars, lost an important battle in its fight to protect user privacy. Announced today, the Supreme Court of Russia ruled against Telegram’s bid to keep the encryption keys of its users private.

Telegram fights to protect its users in Russia

Previously, the Federal Security Service (FSB) of Russia ordered Telegram to hand over the encryption details of the services’ users in late 2017. When Telegram refused, courts in Russia imposed an 800,00 ruble (around $18,000 CAD) fine against the company.

“The FSB’s effort to get access to personal correspondence is an attempt to expand its influence at the expense of the constitutional rights of citizens,” said Telegram CEO, Pavel Durov, as a response to the court’s decision in 2017.

While the company invited lawyers to help challenge the case in 2017, today’s news makes it apparent that Telegram has not been successful in challenging the ruling in the Supreme Court. Regardless, the company pledged to keep fighting.

Threats to block Telegram unless it gives up private data of its users won't bear fruit. Telegram will stand for freedom and privacy. — Pavel Durov (@durov) March 20, 2018

Now, Telegram will attempt to appeal the ruling of Russia’s Supreme Court, hoping to protect its principles of “freedom and privacy.” Russia currently threatens to continue fining Telegram, or enter regulatory processes to block the service in Russia, where it is immensely popular.

Despite skeptics, Telegram continues its ICO

Telegram hopes to monetize its services through launching a payments platform on top of its current messaging services. According to the company’s current plan, it will launch a digital currency called the Gram, which will allow paid services to be exchanged on Telegram’s The Open Network (TON).

In February 2018, the platform raised over $850 million USD in a pre-sale (over $1.1 billion CAD), an amount which the company aims to more-than-double, according to Bloomberg.

However, skeptics question the size and scope of Telegram’s plans, as there is a lot on the line in terms of funding. Specifically, many are concerned that Telegram aims to build its own blockchain architecture. Amidst regulatory fears and the company’s current struggle with Russia, Telegram is amounting a series of obstacles it needs to overcome in order to deliver on its promises.

Image credit: Telegram logo

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