Telegram CEO Pavel Durov’s Arrest in France Leads to 17% Drop in TON Price: Report – Decrypt

Telegram co-founder and CEO Pavel Durov was arrested in France late Saturday, according to a local media report, after arriving on his private jet from Azerbaijan. As the news spread, the price of Toncoin (TON)—the token of the Telegram-affiliated The Open Network—plunged sharply.

The 39-year-old Durov was arrested by France’s National Anti-Fraud Office, reports TF1, over what the publication said were various charges tied to alleged illegal conduct by Telegram users that the service reportedly refused to moderate. According to the publication, this includes charges linked to facilitating terrorism, the sale of narcotics and stolen goods, fraud, and more.

Decrypt reached out to Telegram for confirmation and comment, but did not immediately receive a response.

It’s unclear why Durov, who reportedly does not travel to many countries where Telegram has faced scrutiny, had flown to France on Sunday. TF1 cites an unnamed investigator who said that Durov will “for sure” end up in pre-trial detention.

Telegram’s user base recently topped the 950 million mark, Durov announced in July, with a recent spike in users coinciding with the rise of crypto-fueled games playable on the messaging app via integrated “mini apps.” Hamster Kombat, the largest of them, has reportedly amassed over 300 million players over the past few months ahead of an upcoming token launch and airdrop.

The Open Network was originally created internally at Telegram, but the firm abandoned the project in 2020 amid regulatory scrutiny. Development continued externally via a community of contributors, and over the past year, Telegram has increasingly embraced and integrated the blockchain network.

While that close association has apparently helped boost the price of TON by more than 300% over the past year, that link appears to be hitting TON’s price hard Saturday. TON is down by nearly 17% over the past 24 hours as of this writing, and fell from a price of $6.80 before the reports hit to a current price of $5.61, according to CoinGecko.

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Pavel Durov, the co-founder and CEO of Telegram, found himself in a precarious situation as he was arrested in France late Saturday after arriving on his private jet from Azerbaijan. This unexpected turn of events sent shockwaves through the cryptocurrency world, particularly impacting the price of Toncoin (TON)—the token associated with The Open Network, an affiliate of Telegram. As news of Durov’s arrest spread, TON’s value took a sharp dive, leaving investors in a state of uncertainty and concern.

The 39-year-old Durov was reportedly apprehended by France’s National Anti-Fraud Office, as reported by TF1, on various charges related to alleged illegal activities conducted by Telegram users that the platform had allegedly failed to moderate. These charges range from aiding terrorism to the sale of illicit substances and stolen goods, as well as engaging in fraudulent activities. Decrypt attempted to reach out to Telegram for verification and comment on the matter, but no response was received at the time.

The circumstances surrounding Durov’s visit to France remain murky, especially given his aversion to traveling to countries where Telegram has encountered legal challenges. An unnamed investigator cited by TF1 suggested that Durov is expected to face pre-trial detention in the near future, adding to the uncertainty surrounding his arrest.

Despite these troubling developments, Telegram reported a significant milestone in July, announcing that its user base had exceeded 950 million. This surge in user numbers has coincided with the growing popularity of crypto-based games available on the messaging platform through “mini apps.” Among these games, Hamster Kombat stands out as the most popular, boasting over 300 million players in recent months, ahead of an upcoming token launch and airdrop.

The Open Network, initially an internal project at Telegram, was abandoned by the company in 2020 amidst regulatory concerns. However, the network’s development has continued externally through a network of contributors, with Telegram gradually embracing and integrating blockchain technology into its operations over the past year.

While the association between Telegram and The Open Network has contributed to a more than 300% increase in TON’s value over the past year, the recent turn of events has had a detrimental effect on the token’s price. As of the latest reports, TON has plummeted by nearly 17% in the past 24 hours, dropping from $6.80 to $5.61 on CoinGecko.

In conclusion, the events surrounding Pavel Durov’s arrest have sent shockwaves through the cryptocurrency world, impacting both Telegram’s reputation and TON’s market value. As the situation continues to unfold, investors and the broader community are left wondering about the implications for the future of Telegram and its affiliated projects. Only time will tell how this saga plays out and what it means for the cryptocurrency industry as a whole.

For more trending news on cryptocurrencies and decentralized finance, check out DeFi Daily News. Stay informed and stay ahead in the rapidly evolving world of digital assets.



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