Key Points
- Pavel Durov, 39, the Franco-Russian founder and CEO of Telegram and creator of TON (The Open Network), was arrested by French authorities at Le Bourget airport near Paris. The TON coin experienced a 12% drop in value within an hour of the news about Durov’s arrest breaking.
- Durov faces potential charges, including terrorism, drug trafficking, fraud, money laundering, and complicity in child-criminal offenses due to Telegram’s alleged lack of moderation and cooperation with law enforcement.
Arrest of a Tech Mogul
Pavel Durov, the billionaire founder and CEO of popular messaging app Telegram and creator of the blockchain platform TON (The Open Network), was arrested on Saturday evening at Le Bourget airport near Paris, France. According to French news outlet TF1 (“TF1” en français), Durov was apprehended around 8 PM local time as he disembarked from his private jet on the airport tarmac.
The 39-year-old Franco-Russian entrepreneur, known for his contributions to messaging technology and blockchain innovation, was traveling with his bodyguard and a woman when he was arrested by the Air Transport Gendarmerie (GTA). Durov had arrived directly from Azerbaijan and was subject to a French search warrant issued by OFMIN, a unit of the National Directorate of the French Judicial Police.
Details of the Arrest
The arrest operation was based on a preliminary investigation and executed as soon as Durov set foot on French soil. A source close to the investigation told TF1: “Il a commis une boulette ce soir. On ne sait pas pourquoi… Ce vol n’était-il qu’une escale ? En tout cas, il est coincé !” (“He made a blunder tonight. We don’t know why… Was this flight just a stopover? In any case, he’s trapped!”)
The source noted that Durov typically avoided traveling in Europe, especially to countries where Telegram is under surveillance, preferring to visit the Emirates, former Soviet countries, and South America.
Reasons for the Arrest Warrant
According to TF1’s report, the French justice system considers Telegram complicit in various crimes due to:
- Lack of content moderation
- Insufficient cooperation with law enforcement
- Tools offered by Telegram, such as disposable phone numbers and cryptocurrency options
These factors allegedly contribute to facilitating drug trafficking, child-criminal offenses, and fraud on the platform.
Potential Charges and Legal Proceedings
Investigators from the National Anti-Fraud Office (ONAF), attached to the Customs Directorate, have placed Durov in police custody. He is expected to be presented to an investigating judge as early as Saturday evening, with a possible indictment on Sunday for a multitude of offenses, including:
- Terrorism
- Drug-related offenses
- Complicity
- Fraud
- Money laundering
- Receiving stolen goods
- Involvement with child-criminal content
Immediate Market Reaction
The cryptocurrency market reacted swiftly to the news of Durov’s arrest. Within an hour of the information becoming public, the TON coin, associated with The Open Network created by Durov, experienced a significant drop of 12% in value. This immediate market reaction underscores the close tie between Durov’s public image and the perceived value of his blockchain project.
Implications for Telegram, TON, and the Tech Industry
This high-profile arrest highlights the tension between privacy-focused tech companies and law enforcement agencies. Telegram, known for its emphasis on user privacy and encryption, has faced criticism and legal challenges in various countries for its alleged role in facilitating illegal activities.
The arrest of Durov, a prominent figure in messaging and blockchain technologies, could have significant implications not only for Telegram’s operations but also for the development and future of TON. It may impact the broader debate on tech companies’ responsibilities in moderating content and cooperating with authorities, potentially affecting both the messaging and cryptocurrency sectors.
As this situation develops, millions of Telegram users worldwide, the crypto community involved with TON, and the tech industry will closely watch for further updates and potential impacts on both platforms’ futures. The immediate drop in TON coin value suggests the market is susceptible to news surrounding Durov and his legal status.
