Telegram’s Durov Arrested – TON Coin Plummets

The reports from French media outlets TF1 and BFM TV say Durov was on his private jet, having traveled from Azerbaijan, when he was detained under an arrest warrant linked to a preliminary police investigation concerning the app’s moderation practices, which are suspected of enabling criminal activities. Founded in 2013, Telegram says it is committed to protecting users’ “private conversations from snooping third parties, such as officials, employers, etc.”

Secret chats on the Telegram platform are protected with end-to-end encryption, ensuring that only the sender and recipient can access the message content. The company does not store these chats on their servers or keep logs of the messages which means there is no record of who was involved in the conversation or when it occurred.

The investigation reportedly focuses on the lack of moderators on Telegram, raising concerns that this absence has allowed various criminal activities to flourish on the platform. Durov is expected to appear in court on Sunday, where he may face potential charges.

Telegram, which has nearly one billion users, is particularly influential in Russia, Ukraine, and other former Soviet republics. It has become a primary source of unfiltered information during the ongoing conflict in Ukraine, utilized by both Ukrainian officials and the Russian government for communication and information dissemination.

Durov, who left Russia in 2014 after resisting government pressure to shut down opposition communities on his VKontakte social media platform, has consistently advocated for Telegram as a “neutral platform” in geopolitical matters.

The TON coin price has plummeted around 20% since news of Pavel Durov’s arrest in France. Source: Brave New Coin Market Cap Table

As the founder and CEO of Telegram, Durov’s arrest has had a significant negative impact on the value of Toncoin (TON), the cryptocurrency associated with the Telegram ecosystem. Following the news of Durov’s detention, Toncoin experienced a sharp decline, dropping nearly 17% within hours, from approximately $6.80 to around $5.38.

This decline is particularly notable given Toncoin’s recent performance, which had seen gains of over 450% in the last 12 months, rising to a peak of $8.24 in mid-2024. Neither Telegram or TON coin have released any public statement at this time.