Summary:
- Pavel Durov, CEO of Telegram, was arrested in France under a French search warrant.
- The arrest has triggered a sharp decline in the prices of Toncoin (TON) and Notcoin (NOT).
- Durov faces serious allegations related to facilitating illegal activities through Telegram.
- TON’s market cap dropped from $17.1 billion to around $14 billion within hours.
In a stunning development, Pavel Durov, the 39-year-old founder and CEO of the encrypted messaging app Telegram, was arrested at Le Bourget Airport in France around 8 PM on Saturday. Durov, who holds French-Russian nationality, was detained by the Air Transport Gendarmerie (GTA) as he disembarked from his private jet, accompanied by a bodyguard and a woman.
The arrest was based on a French search warrant issued by the Office of the French National Judicial Police Directorate (OFMIN), following a preliminary investigation. The warrant was enforceable only on French territory, which made Durov’s arrest possible as he landed in France from Azerbaijan. According to French authorities, Durov had been listed in the Wanted Persons File (FPR) due to serious allegations against Telegram. The app’s features, including its lack of content moderation, use of disposable numbers, and support for cryptocurrencies, are believed to have facilitated illegal activities such as drug trafficking, child abuse, and fraud.
French investigators contend that Durov’s refusal to cooperate with law enforcement and his failure to moderate illicit content on Telegram make him an accomplice to these crimes. Sources close to the investigation suggest that Durov had been avoiding countries where Telegram was under scrutiny, choosing instead to travel to regions like the Emirates, former USSR nations, and South America.
Following his arrest, Durov was placed in custody by investigators from the National Anti-Fraud Office (ONAF) and is expected to appear before an investigating judge. He could face a multitude of charges, including terrorism, drug trafficking, complicity, fraud, money laundering, and involvement in child abuse content. French authorities are confident that Durov’s pre-trial detention is almost certain, given his significant resources and the risk of him fleeing.
The news of Durov’s arrest sent shockwaves through the crypto community, leading to a sharp decline in the price of TON, Telegram’s native cryptocurrency. Within an hour of the news breaking, TON’s price dropped by 18%, reflecting investor concerns over the future of Telegram and its associated projects. Notcoin (NOT), another cryptocurrency linked to Telegram, also saw its value crash by 21% as Durov’s legal troubles deepened.
Data from CoinGecko indicates that Toncoin’s market cap plunged from $17.1 billion to around $14 billion within hours. Toncoin is the native coin of The Open Network (TON), a crypto asset closely tied to Telegram and its founder. TON integrates with Telegram, allowing users to use Toncoin for payments, storing value, and accessing decentralized apps within the app. Notcoin, operating on the TON blockchain, has gained significant popularity on Telegram, with over 35 million users in just five months.
However, following Durov’s arrest, Notcoin’s price dropped sharply and is currently trading at around $0.009, down 20% in the last 24 hours. TON is trading at approximately $5.6, about 31% below its all-time high of $8.2 set in mid-June.
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