Durov’s legal issues hit Telegram IPO prospects, shaking investor confidence.
Telegram bonds plunge 10 points after CEO’s arrest amid criminal charges.
Toncoin and Notcoin prices drop sharply, reflecting market unease.
Telegram’s plans for an Initial Public Offering (IPO) within the next two years have faced a setback due to criminal charges against its CEO, Pavel Durov. French authorities accused Telegram of failing to address criminal activities on its platform, including the publication of child sexual abuse material.
The Dubai-based messaging app, owned by Durov, has been actively working to raise revenue ahead of a potential IPO by 2026. Telegram’s 2023 financial statements revealed a revenue of $342 million last year but an operating loss of $108 million. Despite Durov’s significant investment and successful debt financing efforts, the recent legal issues have negatively impacted investor confidence.
Durov’s arrest on August 24, 2023, as he arrived in France, has further raised the situation. The price of Telegram’s bonds dropped nearly 10%, trading at around 87 cents on the dollar and yielding over 16%, down from 96 cents before his arrest.
The …
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