Telegram Faces Indian Probe Following Durov’s Arrest In France: TON Plummets 20%

The Indian government has launched an investigation into the social media platform Telegram over concerns that it is being used for criminal activities such as extortion and gambling. The probe follows the arrest of the app’s CEO Pavel Durov in France over the weekend.

According to recent reports by Indian media outlets, the investigation is being led by the Indian Cyber Crime Coordination Centre under the Ministry of Home Affairs and the Ministry of Electronics and Information Technology.

The report notes that Telegram boasts over 5 million registered users in India, making it one of the country’s most widely used messaging platforms. 

However, the government’s concerns stem from allegations that the app’s peer-to-peer communication features have been allegedly exploited by “bad actors to facilitate illicit activities.”

The fact that Telegram does not have an office in India is reportedly complicating the government’s efforts to regulate and investigate the platform, despite the app’s compliance with India’s Information Technology (IT) Rules.

Reports suggest that the app could even face a potential ban in India depending on the findings of the investigation.

The investigation in India has taken on added significance following the detention of Durov at the Paris-Le Bourget Airport on Saturday, as reported by Bitcoinist. 

Durov, who holds citizenships in Russia, France, the United Arab Emirates (UAE), and St. Kitts and Nevis, is reportedly being accused of failing to curb criminal activities on his platform in the European country.

The French authorities have suggested that Telegram’s encryption tools have allowed criminals to “flourish” on the app. However, Telegram has pushed back, insisting that the company complies with European Union (EU) laws and content-moderation policies, and calling the claims “absurd.”

The arrest has reportedly sparked a backlash from Russian politicians, with some suggesting that it could be “politically motivated.” Russia’s top human rights official, Tatyana Moskalkova, claimed that French authorities arrested Durov because they want to shut down the censorship-free platform.

Amid these mounting legal troubles for the messaging app, Toncoin (TON), the cryptocurrency originally developed by Telegram, has seen losses of over 20% in the seven-day time frame and is currently trading at $5.39. 

However, in a 24-hour time frame, the token has also seen a price drop of nearly 8%, further demonstrating the bearish sentiment surrounding the TON price among investors after the news broke over the weekend. 

CoinGecko data also shows that the token has also seen a 66% drop in trading volume and a 34% gap from its all-time high reached in June this year. 

Featured image from DALL-E, chart from TradingView.com