Toncoin slides 5% as Telegram CEO rumored to face 12 charges

Telegram founder and CEO Pavel Durov has reportedly been tried in France on 12 charges related to financial and cybercrime following his arrest last weekend.

Toncoin (TON), the native cryptocurrency of Telegram-backed The Open Network, fell as much as 5% following news that Durov was indicted by French authorities. According to price data from Crypto.news, TON is trading below $5.59, down 32% from its all-time high set in June.

24-hour TON price chart – August 26 | Source: crypto.news Durov’s alleged fees

Following Durov’s arrest at Le Bourget Airport near Paris, crimes allegedly committed by an unnamed man believed to be the founder of the organization came to light.

The 12 charges included three crypto-related crimes: “Providing unlawful cryptology services for confidentiality purposes, providing cryptology tools without prior notice, and importing cryptology tools without prior notice.”

If Durov is indeed suspected of these crimes, the charges are likely to be linked to TON, a blockchain network integrated with Telegram’s private messaging app.

The unnamed man was also charged with money laundering, criminal conspiracy, and refusal to cooperate with law enforcement. According to reports, the Telegram founder could remain in custody until August 28 as investigations progress. If tried and found guilty on these charges, the founder could face up to 20 years in prison.

At press time, the allegations against Durov have not yet been confirmed as the story continues to develop.

Finally, the charges against Pavel Durov were published:

– Complicity – Management of an online platform to facilitate an illegal action by an organized group,

– Refusing to provide necessary information or documents upon request from the competent authorities… https://t.co/BZzZ8pAjLL pic.twitter.com/v3AXM2BS5X

— Baptiste Robert (@fs0c131y) August 26, 2024

Community criticizes flawed logic used against Telegram CEO

Following Durov’s arrest over the weekend, billionaires and pro-crypto voices criticized the move as an attack on personal privacy in Europe.

Figures like Elon Musk and Justin Sun have added to the public chorus calling for Durov’s release and the end of the Telegram investigation, with backlash from social media communities increasing after Durov’s alleged accusations were revealed.

The consensus among outraged observers was that the logic behind Durov’s rumored crimes made little sense and could be applied to several other founders as well.

They accuse Durov of being complicit in every bad behavior carried out by users via Telegram

Unless they are somehow involved in fraud, underage pornography, drugs, and gang activity – by that logic every internet company CEO is guilty of the same thing https://t.co/hGdCWG9F9U

— Steven Lubka ☀️ (@DzambhalaHODL) August 26, 2024

Will TON on Telegram be able to survive?

While Durov has garnered significant support, the legal challenges he faces raise questions about the future of TON on Telegram.

TON’s success is heavily dependent on its integration with Telegram and the platform’s 900 million users. This legal threat could pose a significant challenge to The Open Network. However, Durov’s victory could lead to greater TON adoption and signal a significant victory for crypto and decentralized privacy initiatives.