Telegram CEO Pavel Durov Arrest Sparks Toncoin Price Crash

Pavel Durov, Telegram’s co-founder and CEO, was reportedly arrested in France on Saturday, according to a local media outlet. France’s National Anti-Fraud Office detained the 39-year-old entrepreneur after he landed in the country on his private jet from Azerbaijan.

The arrest stems from allegations involving illegal activities on Telegram that the platform allegedly failed to moderate.

Telegram CEO Pavel Durov Arrested in France

According to French broadcaster TF1, Durov faces multiple charges, including enabling terrorism, drug trafficking, and the sale of stolen goods. The report suggests that these accusations are related to Telegram’s reluctance to police content shared by its users. An unnamed investigator told TF1 that authorities will likely place Durov in pre-trial detention.

After the reports surfaced, The Open Network (TON) issued a statement on X but refrained from sharing specific details about the investigation. 

“We want to assure everyone that the TON community remains strong and fully operational. As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time. Pavel has been a dedicated advocate for these values, and we believe his efforts to promote an open and decentralized internet will continue to inspire million,” the statement read.

Read more: What Are Telegram Mini Apps? A Guide for Crypto Beginners

Telegram’s user base has surged, recently surpassing 950 million users, Durov announced in July. The messenger’s surging popularity has drawn scrutiny from several European countries, including France, due to concerns over security and data breaches.

After the reported arrest of CEO Pavel Durov, several Russian officials swiftly condemned France’s actions, likening them to Moscow’s previous efforts to control Telegram. Mikhail Ulyanov, Russia’s representative to international organizations in Vienna, pointed out the irony, recalling similar criticisms Moscow faced when pressuring Durov in 2014 and attempting to ban the platform in 2018.

“Some naive persons still don’t understand that if they play more or less visible role in international information space it is not safe for them to visit countries which move towards much more totalitarian societies,” Ulyanov commented.

Elon Musk also weighed in following reports of Durov’s detention. “It’s 2030 in Europe and you’re being executed for liking a meme,” Musk posted, highlighting concerns over free speech in an increasingly regulated digital space.

Durov’s unexpected trip to France has raised questions, as he typically avoids countries where Telegram has encountered issues. The arrest also caused a sharp drop in the value of Toncoin (TON), the cryptocurrency tied to The Open Network, which Telegram originally developed.

Read more: 6 Best Toncoin (TON) Wallets in 2024

Since the news broke, Toncoin’s price has plummeted by nearly 15%, dropping from $6.80 to $5.76, according to BeInCrypto data.