The arrest of Pavel Durov has stirred significant controversy and uncertainty in the tech world. Detained in France on multiple charges, including conspiracy, fraud, and money laundering, Durov’s sudden legal troubles have not only captivated global attention but also sent shockwaves through the cryptocurrency market. As news of his arrest went viral, Toncoin saw a sharp decline in its value. Amidst the turmoil, both the legal ramifications for Durov and the broader impact on the TON ecosystem continue to unfold, with responses ranging from high-profile support for Durov to cyberattacks against French institutions. This article delves into Durov’s arrest, the ensuing market reactions, and the ongoing developments surrounding this high-profile case.
Pavel Durov Arrest and Legal Challenges
On August 24, 2024, Pavel Durov, CEO of Telegram, was arrested in France under various charges related to the social media platform. Durov, who had just arrived in France from Baku, Azerbaijan, was detained at the Le Bourget airport outside Paris after disembarking from his private jet. He was accused of conspiracy, fraud, terrorism, money laundering and more. Tucker Carlson, a former Fox News TV host, on his X account told,
“Pavel Durov sits in a French jail tonight, a living warning to any platform owner who refuses to censor the truth at the behest of governments and intel agencies”
French Authorities Detainment
The French authorities detained Durov concerning a search warrant against Telegram for several alleged violations, including drug trafficking, cyberbullying, organized crimes, and others. France’s L’Office Mineurs (OFMIN) issued a search warrant for Pavel Durov as part of the preliminary investigation against the messaging platform Telegram.
In response to Durov’s arrest, major figures worldwide, including Elon Musk, Vitalik Buterin, Robert F. Kennedy Jr., and others, took to the X platform to express their support for Durov. Furthermore, social media was full of messages of support and calls for “Free Durov.”
French Gov Sites Hacked Following the Arrest of Telegram CEODetention Extended by French Magistrate
On 25 August, the magistrate responsible for investigating Durov’s case extended the detention to 96 hours. This is the maximum limit of the detaining phase, after which the judge can decide whether to press charges or release Durov. On the same day, Telegram also issued its official message stating, “Telegram abides by EU laws, including the Digital Services Act, and that Telegram’s CEO Pavel Durov has nothing to hide and travels frequently in Europe.”
Source: Telegram
President Macron Comments
On August 26, French President Emmanuel Macron issued a statement on the social media platform X stating that the arrest of Telegram’s president on French soil took place as part of an ongoing investigation and was in no way a political decision. Furthermore, he stated that the French were deeply committed to freedom of expression and communication, to innovation, and to the spirit of entrepreneurship.
French Prosecutors Clarify the Investigation
The French prosecutors released a notice on the 26th stating that Durov was detained and taken into custody as part of a judicial investigation “against person unnamed.” The unnamed person was charged with refusal to communicate with authorities, complicity with illegal activities, criminal association, money laundering, and more. Furthermore, the authorities stated that the Telegram founder would be questioned until the 28th as part of the investigation.
Cyberattacks Follow Durov’s Arrest
In response to the arrest of Pavel Durov, a Russian billionaire, multiple French government websites have gone offline in a DDoS (denial of service) attack believed to be the work of a Russian hacker group. These include the Administrative Court of Paris, the Court of Cassation, and the French Health Department’s ansm.sante.fr site.
Details of the Investigation
On August 28, Politico, a well-known digital newspaper, shed further light on the case against Durov. According to the French administrative documents seen by Politico, the arrest warrant for Pavel Durov and his brother Nikolai Durov was first issued in March 2024. The warrants were allegedly issued because Telegram refused to cooperate with a previous investigation, where the French authorities received “no answer” from the messaging platform to an inquiry requesting to identify a Telegram user.
Durov Charged and Released on Bail
Paval Durov was taken to court on the afternoon of August 28. French prosecutors charged Durov with criminal charges for his role in Telegram and barred him from leaving French soil. Currently, Pavel Durov is staying in France after posting a bail of 5 million euros ($5.5 million).
Effects of Durov’s Arrest on TON
Toncoin, originally developed by Telegram and currently the native coin of the Open Network, saw its prices fall sharply after news about Telegram CEO Pavel Durov’s arrest became viral. TON prices fell from around $6 on 24 August to $5.24 on August 25, a 25% decline.
Telegram Open Network Disrupted by DOGS Memecoin LaunchFurthermore, futures traders who saw the opportunity in TON’s price decline hedged their bets on it. A few hours after the report, TON witnessed a 32% surge in Open Interest (OI), reaching $303.09 million. Additionally, The Open Network issued an official statement stating that the protocol was unaffected and remains fully operational.
“Following the recent news related to the Telegram’s founder Pavel Durov, we want to assure everyone that the TON community remains strong and fully operational. As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time.”
Conclusion
Pavel Durov’s arrest has sent shockwaves through the tech world, underscoring the complex intersection of legal scrutiny and digital innovation. The French authorities’ crackdown on Durov and Telegram highlights the broader regulatory challenges global tech platforms face. While the arrest has led to a significant drop in Toncoin’s price, it has also triggered a notable increase in trading activity, reflecting the volatility and opportunistic nature of the cryptocurrency market.
The global response from prominent figures expressing support to cyberattacks on French government websites demonstrates the wide-reaching implications of this case. The resilience of the TON community and the ongoing scrutiny of Telegram will likely shape the future trajectory of both Durov’s legal situation and the broader digital landscape.
