Toncoin (TON) Crashes as Telegram CEO Pavel Durov Detained in France

Toncoin (TON), the native cryptocurrency of The Open Network, experienced a sharp decline after Telegram CEO Pavel Durov was reportedly arrested in France. Data from CoinGecko shows that TON hit a low of $5.31 in the early hours of Sunday, down approximately 20% after arrest news surfaced.

Durov faces multiple charges, including terrorism and money laundering.

At press time, the cryptocurrency is changing hands at $5.63, a slight recovery but still registering over 15% in the last 24 hours, data shows. Alongside its price decline, Toncoin’s market cap also plunged from above $17 billion to $13.4 billion before rebounding above $14 billion.

More Static For Devs

Toncoin is well known for its close connection to Telegram. Before developing its own cryptocurrency, the network was part of Telegram’s projects. The project is now under the TON Foundation’s management and continues to grow independently.

Despite operating separately from Telegram, TON has integrated with Telegram to unlock various functionalities like TON’s wallet, which enables users to access their Toncoin directly within Telegram, make crypto transactions, and interact with decentralized applications (dApps).

Building upon the successful collaboration, TON and Telegram plan to roll out upcoming features, which will enhance Toncoin’s utility and accessibility within the Telegram ecosystem.

The close-knit partnership between TON and Telegram explains the reason behind Toncoin’s price decline following Telegram CEO’s arrest. It looks like global law enforcement won’t give up on knocking talented devs.

Blasted Across The Board

Like Toncoin, Notcoin (NOT), a cryptocurrency that operates on the TON blockchain, is also part of the broad ecosystem that Telegram has fostered. Designed to engage users through a “tap-to-earn” game integrated into Telegram, Notcoin has captured millions of players worldwide. At its peak, the game had around 35 million users.

After Durov was detained in France, NOT was down over 20%, from $0.012 to $0.0091. The cryptocurrency is currently trading at around $0.0095. Its market cap also plunged from $1.2 billion to below $950 million, CoinGecko’s data shows.

What Happened to Pavel Durov?

On August 24, Durov was detained by French authorities at Le Bourget airport after his arrival from Azerbaijan. French media, citing judicial sources, first reported the arrest which was then confirmed by Russian Foreign Ministry spokeswoman Maria Zakharova on Telegram.

As reported, France’s L’Office Mineurs issued a search warrant as part of an investigation into accusations against Telegram, including lack of content moderation which allegedly facilitates fraud, drug trafficking, and other illegal activities. This potentially leads to a 20-year prison term for Durov.

There was no official comment from Telegram at the time of the news breaking. Despite the arrest, the TON blockchain remains operational and the TON community also shows support for Durov.

Durov’s arrest has sparked criticism from many high-profile figures and cryptocurrency members, including Elon Musk and Vitalik Buterin.

Strong Support

Musk, the owner of X (formerly Twitter), shared a video of Durov’s interview with Tucker Carlson, where Durov discussed innovations of X and Musk’s role, along with the hashtag ‘#FreePavel.’

Musk also described Durov’s arrest as a “convincing” advertisement for the First Amendment, which protects free speech.

While Buterin, the co-founder of Ethereum, did not directly comment on Durov’s arrest, he found the charges against Durov concerning for software freedom in Europe.

Durov has positioned Telegram as a strong advocate for user privacy. He has claimed that Telegram will never share user data with third parties, including governments, and has built the platform around encrypted messaging to protect user communications.

Telegram’s vision has drawn increasing regulatory oversight. Durov previously claimed pressure from US authorities, alleging that they attempted to control the messaging app. He said that US agents tried to hire a Telegram engineer and frequently questioned him upon entry as part of their agenda.