Toncoin Price Crashes Double Digits After Telegram Founder Pavel Durov Is Arrested In France
Pavel Durov, the billionaire founder and CEO of the Telegram messaging app, was arrested at Le Bourget Airport in France late Saturday and placed in custody by agents from the countrys National Anti-Fraud Office.
As the shocking news circulated online, the price of Toncoin (TON) the token of the Telegram-linked The Open Network logged double-digit losses as traders exited their positions in a panic.
Why Durov Was Arrested
Durov was apprehended while traveling with a woman and his bodyguard from Azerbaijan to Paris, TF1 reported. The 39-year-old was the subject of a search warrant from Frances National Anti-Fraud Office (OFIM), an office tasked with combating sexual exploitation against minors.
The enforcement action originates from a criminal complaint from OFIM over Telegrams alleged lack of moderation, which has allowed criminal activities to increase on the platform, the report noted. French officials argue that Telegrams negligence has enabled illegal activities, raising concerns about the platforms role in fostering terrorism, the sale of narcotics and stolen goods, and fraud.
Pavel Durov will end up in pre-trial detention, thats certain on his platform, he allowed countless offenses and crimes to be committed for which he does nothing to moderate or cooperate, an investigator from OFIM told TF1.
Its not clear why Durov, who reportedly travels less to many territories where Telegram is under intense scrutiny, had flown to France on Aug. 24.
Due to the nature of the alleged offenses, the billionaire, who is also a citizen of that country, faces up to 20 years in French prison.
Impact On TON
Originally, the Open Network (TON) was developed internally at Telegram, but the company ditched the project in 2020 due to heightened regulatory scrutiny. Development continued externally through a community of developers, but Telegram has since integrated the blockchain network within its ecosystem.
While that close connection has seemingly fueled the TON price by a staggering 300% in the last year, that association became a bane for the crypto this weekend. TON plunged by as much as 24% to hit $5.31 earlier today. The token has since recouped some of the losses and is changing hands at $5.89 as of press time, a -13.5% change on the day, according to CoinGecko.
Moreover, the blockchain protocol insists it remains fully operational amid Durovs detention.
As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time, an official statement on TON blockchains X account reads.
Other notable figures in the crypto community have likewise affirmed support for the detained Telegram founder, including Ethereum founder Vitalik Buterin and Dogefather Elon Musk.
Text source: ZyCrypto
