Toncoin (TON), the cryptocurrency linked to The Open Network, saw its value plummet by 7% after Pavel Durov, the founder of Telegram, was detained in France. Over the weekend, TON’s price fell to $5.08, a sharp drop from its recent high of $6.75-6.80. This decline marks a significant 35% decrease from its peak in June.
Durov was arrested at Le Bourget Airport near Paris while arriving on a private jet. The charges against him are related to allegations against Telegram, his messaging platform. French authorities accuse Telegram of being inadequately moderated compared to other apps and networks. They allege that the platform has been used for illegal activities, including drug trafficking, child exploitation, terrorism, and fraud. Durov and Telegram are also charged with not cooperating with efforts to combat these issues.
The legal situation has stirred considerable unrest in both the tech and cryptocurrency worlds. Durov faces a potential 20-year prison sentence if convicted. He will remain in custody at least until August 28 as the legal process continues. The charges are still under investigation, and no final decision has been made yet.
The impact on Toncoin’s value reflects investor anxiety about The Open Network’s future. Although TON officially separated from Telegram in 2020 after a court order by the SEC, the cryptocurrency’s market is still sensitive to Telegram’s reputation. The link between the two continues to affect TON’s performance.
Internationally, the arrest has attracted significant attention. Russian authorities have demanded explanations from France and are seeking consular access to Durov. The Russian Embassy in France has called for Durov’s rights to be protected and expressed frustration with the lack of communication from French officials. High-profile figures like Elon Musk and Justin Sun have criticized the charges, arguing they might infringe on privacy and target tech entrepreneurs. As the situation evolves, both the cryptocurrency community and global observers are keenly watching its effects on Toncoin and the broader tech industry.
