The founder and chief executive officer of the social media platform Telegram, Pavel Durov, was recently arrested in France following allegations of criminal activities on the platform. The news sent shockwaves throughout the industry prompting top figures to react. The billionaire was arrested at Bourget airport outside Paris on arrival in his private jet.
Investigations Into Durov
According to reports from local media outlets, the focus of the police probe into Durov is the social app Telegram’s lack of moderators, which they say has allowed illegal activities to continue unchecked. In an interview with Tucker Carlson earlier this year, Durov disclosed the ongoing difficulties he has encountered from international authorities, particularly those from Russia and the United States.
Durov has repeatedly denied demands from the authorities for a back key to facilitate investigations. Notably, the massive messaging network has a reputation for having robust encryption.
Meanwhile, top figures in the industry including Elon Musk have reacted to the news. In a recent post on X (formerly Twitter), the owner of the platform, Musk, cited the First Amendment’s free speech protections in the United States. In another post, he pointed to the possibility of people now getting arrested for liking memes on social media in the future.
Additionally, Musk also cited rumors that suggested Durov may get a 20-year prison term. The TON blockchain team informed the community that Ton is still fully functional in a post about Durov’s arrest that was made on X.
Toncoin (TON) Declined Sharply Following Arrest
Meanwhile, the price of the Telegram-linked coin Toncoin plummeted by almost 20% immediately after the news arrest surfaced. However, at its price has regained some of its losses. At the time of writing, TON traded at $5.60, representing a 0.79% decline over the last day.
Additionally, its one-day trading volume dropped by 54.28% to $1.08 billion with a market cap of $14.2 billion. The significant decline in its market cap triggered a fall from the 9th largest cryptocurrency position to the #10, unseated by Tron (TRX) which is currently undergoing a rally owing to the memecoin frenzy on the SunPump ecosystem.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.