Toncoin Nosedives 20% Following Telegram Founder’s Arrest

• Telegram founder Pavel Durov has been arrested for lack of moderation and cooperation, triggering mixed feelings among advocates and tech moguls. 

• Toncoin (TON) reacted negatively to this news, falling by 20% from $7 to $5.6 in just 48 hours. 

Russian-born billionaire founder and owner of Telegram, Pavel Durov, was arrested at the Le Bourget airport late Saturday (August 24) shortly after landing from Azerbaijan. 

According to multiple sources, the 39-year-old creator of Toncoin (TON) was arrested as part of a preliminary police investigation into alleged crimes related to a lack of moderators on Telegram and a lack of cooperation with the Police. 

The investigating magistrate handling the case extended his detention beyond Sunday night. As experts have clarified, the initial period of detention for questioning can last up to a maximum of 96 days. After this period elapses, the judge can decide to free Durov or press charges against him and remand him in further custody. 

More on the Arrest of the Telegram Founder

Citing SputnikInt as the source, a renowned figure on X, Mario Nawfal, disclosed that Durov could face more severe charges, including terrorism, drug trafficking, fraud, money laundering, and child abuse contents. In a worse case, Durov could be sentenced to a maximum of 20 years. 

French media report that Durov, a dual French and Russian citizen, could face up to 20 years in prison. His arrest is attributed to Telegram’s lack of content moderation and his failure to cooperate with French law enforcement. The charges stem from a search warrant issued by the French National Directorate of Judicial Police.

Soon after this announcement, Telegram’s native token, TON, declined by 20%, falling from $7 to $5.6, slashing its market cap from $17.1 billion to about $14 billion. At press time, TON had slightly recovered to reduce its seven-day gain to negative 16%. On top of that, the 24-hour trading volume was down by 49%, with $1.3 billion floating within the market. 

Could the TON Price Rebound?

Soon after the arrest, Telegram issued a statement, calming investors and salvaging the situation. According to Telegram, they have always abided by European Union (EU) laws, including the Digital Service Act. Objecting to the allegations in the media, Telegram explained that its moderation is within the industry standard and constantly improving. 

In another statement, the messaging platform stated that Durov has nothing to hide and travels frequently to Europe. Amid the ongoing drama, Telegram assured stakeholders that it is waiting for prompt resolution. 

It is absurd to claim that a platform or its owner is responsible for the abuse of that platform. Almost a billion users globally use Telegram as a means of communication and as a source of vital information. We’re awaiting a prompt resolution of this situation. Telegram is with you all.

While Tesla’s Elon Musk has defended Durov, Russia has accused France of refusing to cooperate after earlier demanding access to the suspect. 

Adding to this, US whistleblower Edward Snowden, who took asylum in Russia, has highlighted an infringement on the basic human rights of speech and association. He also blasted France for resorting to taking people hostages to gain access to private communication.