Pavel Durov, the co-founder and CEO of Telegram, was detained in France on Saturday after arriving on his private jet from Azerbaijan.
Pavel Durov, the co-founder and CEO of Telegram, was detained in France on Saturday after arriving on his private jet from Azerbaijan. His arrest was conducted by France's National Anti-Fraud Office and is linked to multiple allegations regarding illegal activities associated with Telegram users that the platform allegedly failed to moderate. These charges reportedly include facilitating terrorism, drug trafficking, and the sale of stolen goods, among other serious offenses.
Durov, 39, has not frequently traveled to countries where Telegram has faced regulatory scrutiny, making his visit to France particularly notable. An unnamed investigator indicated that Durov is likely to face pre-trial detention, although specific details regarding the legal proceedings remain unclear.
As news of his arrest broke, the value of Toncoin (TON), the cryptocurrency associated with The Open Network, an open-source blockchain project building on Telegram, suffered a significant decline. The token's price dropped over 21% within 24 hours, falling from $6.80 to as low as $5.33, according to CoinMarketCap data. TON recovered slightly and is currently trading at $5.69.
The Open Network, initially developed by Telegram, was put on hold in 2020 due to regulatory challenges. However, the project has seen renewed interest and development through a community of contributors. Over the past year, Telegram has increasingly integrated the blockchain network, which has contributed to a surge in Toncoin's value, rising over 300% in the last year. This association with Telegram has been a double-edged sword, as the recent legal troubles have raised concerns among investors.
Despite the turmoil, Telegram's user base continues to grow, recently surpassing 950 million users. This growth has been fueled in part by the rising popularity of crypto-based games available on the platform through integrated mini-apps. Notably, the game Hamster Kombat has attracted over 300 million players ahead of its token launch, reflecting the increasing intersection of gaming and cryptocurrency within the Telegram ecosystem.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
