Pavel Durov, the billionaire founder and CEO of Telegram, was arrested at Le Bourget Airport in France on Saturday night. He was detained by agents from the country's National Anti-Fraud Office, causing widespread shock and panic in the cryptocurrency market.
The news of Durov's arrest sent the value of Toncoin (TON), a token linked to The Open Network associated with Telegram, into a nosedive as traders scrambled to sell off their holdings.
Details of Durov's Arrest
According to a TF1 report, Durov was traveling with a woman and his bodyguard from Azerbaijan to Paris when he was apprehended. The 39-year-old was the subject of a search warrant issued by France’s National Anti-Fraud Office (OFIM), which is responsible for combating the sexual exploitation of minors.
The arrest was the result of a criminal complaint filed by OFIM, accusing Telegram of inadequate platform moderation, which allegedly allowed criminal activities to thrive. French authorities claim that Telegram's negligence has facilitated terrorism, drug trafficking, the trade of stolen goods, and various forms of fraud.
“Pavel Durov is expected to be held in pre-trial detention... In his position, he permitted numerous crimes to occur without taking appropriate action,” an OFIM investigator told TF1.
It remains unclear why Durov, who typically avoids regions where Telegram is heavily scrutinized, chose to travel to France on August 24th.
Given the gravity of the allegations, Durov, who is also a French citizen, could face up to 20 years in prison if convicted.
Impact on TON
The Open Network (TON) was originally developed by Telegram, but the company abandoned the project in 2020 due to regulatory pressures. However, the development continued independently through a community of developers, and Telegram has since reintegrated the blockchain network into its ecosystem.
While this connection fueled a 300% increase in TON's value over the past year, the recent events have caused a major setback for the cryptocurrency. TON plummeted by 24%, dropping to $5.31 earlier today. Although the token has since recovered slightly, trading at $5.89 at the time of reporting, it remains down 13.5% for the day.
Despite Durov’s arrest, the TON blockchain protocol has assured users that it remains fully operational.
“As a community committed to free speech and decentralization, we stand firmly with Pavel during this challenging time,” read an official statement from the TON blockchain’s account on X.
Other notable figures in the cryptocurrency world, including Ethereum founder Vitalik Buterin and Dogecoin supporter Elon Musk, have voiced their support for the detained Telegram founder.
