Telegram co-founder and CEO, Pavel Durov, was reportedly arrested in France on August 24, sparking significant market turbulence for Toncoin (TON), the cryptocurrency associated with the Telegram-affiliated blockchain, The Open Network (TON).
The news of Durov’s detention, reported by French media outlet TF1, cited unnamed sources suggesting Durov was apprehended upon arriving in France from Azerbaijan on his private jet.
Durov’s arrest allegedly stems from various charges tied to the moderation of content on the Telegram platform. The charges, as per TF1, relate to facilitating illegal activities such as terrorism, drug trafficking, and fraud, which Telegram reportedly failed to address adequately.
While French authorities have yet to issue an official statement, reports suggest that Durov may be held in pre-trial detention, although the specifics remain unclear.
The impact of Durov’s arrest has been immediately felt in the cryptocurrency market. Toncoin, the native token of The Open Network, experienced a sharp decline in value. The token, which had reached a high of $6.86 on August 24, plummeted by more than 10% following the news, settling at around $5.85 at the time of publication. Over the past seven days, Toncoin has seen a drop of approximately 9.29%, according to data from CoinMarketCap.
The volatility in Toncoin’s price reflects the broader uncertainty surrounding Telegram and its leadership. Despite the market downturn, support for Durov has surged within the cryptocurrency and Telegram communities. For instance, social media platforms have been flooded with messages of support and calls to “Free Durov.” Even high-profile figures such as American commentator Candace Owens and former Fox News host Tucker Carlson have weighed in, framing Durov’s arrest as a consequence of his commitment to free speech and privacy.
In response to the unfolding situation, The Open Network issued a statement on August 25 via Telegram, reassuring the community of its ongoing commitment to decentralization and freedom of speech. The statement emphasized that the TON community remains “strong and fully operational,” and expressed unwavering support for Durov during this challenging time.
As the situation develops, the Russian embassy in France has reportedly sought clarification from French authorities regarding Durov’s detention, though cooperation has been minimal. A formal statement from French officials is expected on Monday, August 26, which may shed more light on the charges against Durov and the implications for Telegram and Toncoin.
The arrest of Pavel Durov has not only rattled the market but also highlighted the increasing scrutiny faced by tech leaders who prioritize privacy and free speech in the face of government regulation. The cryptocurrency world will be closely watching the outcome of this situation, as it could have far-reaching consequences for the future of Telegram and The Open Network.
