Toncoin Plummets After Telegram Founder’s Arrest

As this shocking news spread online, the value of Toncoin (TON)—a token associated with The Open Network linked to Telegram—plummeted, with traders rushing to exit their positions in a panic.

Why Durov Was Arrested Durov was apprehended while traveling with a woman and his bodyguard from Azerbaijan to Paris, according to a report by TF1. The 39-year-old was the subject of a search warrant issued by France’s National Anti-Fraud Office (OFIM), a department tasked with combating the sexual exploitation of minors.

This enforcement action was triggered by a criminal complaint from OFIM, accusing Telegram of failing to properly moderate its platform, thereby allowing criminal activities to flourish, the report noted. French authorities allege that Telegram’s negligence has enabled illegal activities, raising concerns about the platform’s role in facilitating terrorism, drug trafficking, and the trade of stolen goods, as well as fraud.

“Pavel Durov is certain to be held in pre-trial detention… In his role, he allowed numerous crimes to occur without taking any action to mitigate or cooperate,” an investigator from OFIM told TF1.

It remains unclear why Durov, who is known for rarely traveling to regions where Telegram is under heavy scrutiny, chose to fly to France on August 24th.

Due to the severity of the alleged crimes, the billionaire, who is also a citizen of the country, could face a prison sentence of up to 20 years in France.

Impact on TON The Open Network (TON) was initially developed internally at Telegram, but the company abandoned the project in 2020 due to intense regulatory scrutiny. Development continued independently through a community of developers, and since then, Telegram has reintegrated the blockchain network into its ecosystem.

While this close association seemed to have driven a 300% surge in TON’s value over the past year, it has become a significant setback for the cryptocurrency this weekend. TON plunged as much as 24%, dropping to $5.31 earlier today. The token managed to recover some of its losses and was trading at $5.89 at the time of reporting, down 13.5% for the day.

Despite Durov’s detention, the blockchain protocol has assured that it remains fully operational.

“As a community committed to free speech and decentralization, we stand firmly with Pavel during this challenging time,” read an official statement from the TON blockchain’s account on X.

Other prominent figures in the cryptocurrency community, including Ethereum founder Vitalik Buterin and Dogefather Elon Musk, have also expressed their support for the detained Telegram founder.