Pavel Durov, the co-founder and CEO of Telegram, has been detained by authorities in France, triggering immediate repercussions for the cryptocurrency associated with the messaging service. Upon his unexpected arrest late Saturday after a flight from Azerbaijan to France, the value of Toncoin (TON)—the digital currency of The Open Network that enjoyed Telegram’s backing—experienced a sharp downturn.
The arrest, as reported by French media outlet TF1, was executed by France’s National Anti-Fraud Office. Durov, 39, now faces multiple charges, which TF1 attributes to alleged illicit activities conducted by Telegram users, activities that the messaging service is accused of inadequately moderating. These accusations include acts facilitating terrorism, narcotics trade, distribution of stolen properties, fraud, among other serious charges.
Efforts to obtain comments from Telegram have been made, though responses were pending at the time of writing.
Details surrounding Durov’s decision to visit France remain vague, especially given his known avoidance of visits to countries that have scrutinized Telegram in the past. According to an unnamed investigator quoted by TF1, Durov’s detention prior to a trial appears certain.
This development comes at a time when Telegram’s user engagement has notably increased, recently surpassing 950 million active users—a milestone Durov highlighted in July. This surge in users coincided with the introduction of crypto-enabled games accessible through Telegram’s “mini apps,” among which Hamster Kombat has emerged as a significant draw, gathering over 300 million players in anticipation of its token launch and airdrop.
Originally a Telegram initiative, The Open Network transitioned to external development in 2020 under the weight of regulatory scrutiny yet has maintained support and integration by Telegram. This affiliation has previously contributed to a significant appreciation in TON’s value, showing over a 300% increase within the past year. However, the immediate effect of Durov’s arrest saw TON’s value plummet by nearly 17% within 24 hours, descending from $6.80 to $5.61, as per data from CoinGecko at the time of reporting.
The situation continues to develop, and its impact on Telegram’s operations and the wider crypto market remains to be fully understood.