Toncoin cryptocurrency drops 19% following Durov's arrest
The founder of Telegram was arrested in France last week, facing allegations of inadequate moderation on the messaging platform. Read Full Article at RT.com
TroibNews 
Last week, Pavel Durov, the founder and CEO of Telegram, was detained in France under allegations of failing to adequately moderate the messaging service, reports indicate.
Following Durov's arrest, the value of Telegram's cryptocurrency, Toncoin, plummeted by almost 19%, according to a report from Vedomosti, which referenced data from the Binance cryptocurrency exchange. Toncoin’s value dipped from $6.79 just prior to the arrest to $5.5 by the afternoon of August 26 Moscow time. The cryptocurrency also fell out of the top 10 most actively traded currencies on international exchanges, and its market capitalization decreased from $17.1 billion to $14 billion, the Crypto Briefing website reported.
Durov, along with his brother Nikolay, originally introduced the Telegram Open Network (TON) blockchain in 2018. However, they halted the project in 2020 amid a lawsuit from the US Securities and Exchange Commission (SEC), which accused them of conducting an unregistered $1.7 billion initial coin offering. Despite these setbacks, in September of the previous year, Durov launched both the TON blockchain and the Toncoin cryptocurrency again, stating that the coin would be frequently utilized by businesses and developers on Telegram.
Durov, a 39-year old Russian entrepreneur with citizenship in France, the UAE, and Saint Kitts and Nevis, was arrested by French officials following his arrival in Paris from Azerbaijan on August 24. Media sources allege that Durov is to face charges related to insufficient moderation on Telegram, accused of allowing the platform to be used by criminals.
In response, Telegram has maintained that it adheres to all EU laws and content moderation policies, denouncing the claims that Durov is accountable for the platform’s misuse by criminals as “absurd.” Durov himself has been vocal about resisting pressures from the US government to both provide user data and implement a surveillance "backdoor."
Max Fischer for TROIB News
Following Durov's arrest, the value of Telegram's cryptocurrency, Toncoin, plummeted by almost 19%, according to a report from Vedomosti, which referenced data from the Binance cryptocurrency exchange. Toncoin’s value dipped from $6.79 just prior to the arrest to $5.5 by the afternoon of August 26 Moscow time. The cryptocurrency also fell out of the top 10 most actively traded currencies on international exchanges, and its market capitalization decreased from $17.1 billion to $14 billion, the Crypto Briefing website reported.
Durov, along with his brother Nikolay, originally introduced the Telegram Open Network (TON) blockchain in 2018. However, they halted the project in 2020 amid a lawsuit from the US Securities and Exchange Commission (SEC), which accused them of conducting an unregistered $1.7 billion initial coin offering. Despite these setbacks, in September of the previous year, Durov launched both the TON blockchain and the Toncoin cryptocurrency again, stating that the coin would be frequently utilized by businesses and developers on Telegram.
Durov, a 39-year old Russian entrepreneur with citizenship in France, the UAE, and Saint Kitts and Nevis, was arrested by French officials following his arrival in Paris from Azerbaijan on August 24. Media sources allege that Durov is to face charges related to insufficient moderation on Telegram, accused of allowing the platform to be used by criminals.
In response, Telegram has maintained that it adheres to all EU laws and content moderation policies, denouncing the claims that Durov is accountable for the platform’s misuse by criminals as “absurd.” Durov himself has been vocal about resisting pressures from the US government to both provide user data and implement a surveillance "backdoor."
Max Fischer for TROIB News
