Toncoin Drops 14% Following Telegram CEO Pavel Durov’s Arrest in France

Toncoin (TON) faced a steep decline, dropping over 14.5%, following reports that Telegram CEO Pavel Durov was arrested in France. The arrest, which took place at Le Bourget Airport as Durov disembarked from a private jet from Azerbaijan, stems from a warrant issued by OFMIN, a newly established French law enforcement office focused on preventing violence against minors. Durov’s unexpected detainment is linked to an ongoing investigation into Telegram’s alleged failure to adequately moderate illegal content on its platform.

Background on the Arrest

Durov was apprehended on Saturday evening as he arrived at the airport, accompanied by a bodyguard and a female companion. According to reports, Durov was aware of his status on France’s wanted persons list but still chose to land in the country. His arrest has been confirmed by multiple sources, including the BBC and Reuters, and has sparked significant backlash both within and outside the crypto community.

Allegations Against Durov

The charges against Durov include a range of serious offenses, such as drug trafficking, distribution of child sexual abuse material (CSAM), cyberbullying, organized crime, and the promotion of terrorism. These accusations stem from Telegram’s perceived lack of moderation and insufficient cooperation with law enforcement, making it a preferred platform for organized crime, according to French media outlet TF1. French authorities are reportedly exploring the possibility of forcing Telegram to provide encryption keys, a tactic that has been attempted by other governments, including Russia.

The arrest has been confirmed by other major outlets, including the BBC and Reuters, highlighting the global implications of this development.

Market Impact

The news of Durov’s arrest has had a significant impact on Toncoin, which is currently trading at approximately $5.75, down 14.5%. The broader cryptocurrency market has remained relatively stable. This sharp decline in Toncoin’s value highlights the market’s sensitivity to legal and regulatory challenges faced by key figures in the crypto industry.

Reactions and International Backlash

The arrest has ignited a wave of online support for Durov, with the hashtag #FreePavel trending across social media platforms. Notable figures, including Elon Musk and Robert F. Kennedy Jr., have publicly called for Durov’s release, emphasizing the need to protect free speech. Musk, in particular, criticized the arrest as a sign of growing censorship in Western countries.

Telegram has yet to issue an official statement regarding Durov’s detention, but the platform’s News channel described the situation as “absurd,” noting that Durov has “nothing to hide” and frequently travels across Europe. The Russian embassy in Paris also criticized French authorities for not providing clear reasons for Durov’s detention or facilitating consular access.

Future of Telegram and Toncoin

Durov’s arrest has raised concerns about the future of Telegram and its associated projects, including Toncoin. Telegram insiders have expressed shock at the arrest, with some fearing that the company may struggle to function without Durov’s leadership. Durov is deeply involved in all aspects of Telegram’s operations, from financing and development strategies to content moderation policies. If Durov remains detained, it could create significant challenges for the company, particularly in maintaining its infrastructure and making necessary payments.

Despite these concerns, some former Telegram executives believe that the company’s small staff and established processes will allow it to continue operating normally in the short term. However, the long-term impact of Durov’s absence remains uncertain, especially if the investigation leads to further legal actions against him or the company.

As the situation unfolds, the crypto community and international observers will be closely watching to see how Telegram and Toncoin navigate this crisis.