Toncoin Price Crashes 17% As Telegram Founder Faces France Detention

Toncoin, the native cryptocurrency of The Open Network – previously linked to Telegram – has seen huge selling pressure following Telegram founder Pavel Durov’s arrest in France on Saturday. In the last 24 hours, the Toncoin price has come crashing down by 17% slipping to the 9th spot under Dogecoin.

Toncoin Price Slips As Telegram Founder Faces Detention

According to French news site TF1, Pavel Durov was arrested around 8 PM as he disembarked from his private jet at Le Bourget airport. He was accompanied by his bodyguard and a woman at the time of the arrest.

The operation was carried out by the Air Transport Gendarmerie (GTA), acting on a French search warrant issued by the OFMIN of the national directorate of the French judicial police.

This warrant was reportedly issued as part of an ongoing investigation into Durov’s alleged involvement in criminal activities linked to the operations of his platform, Telegram. The charges are serious, encompassing a range of offenses from terrorism and narcotics trafficking to fraud and the distribution of illegal content, including material related to child exploitation.

Investigation and Custody

Following his arrest, Telegram’s founder was placed in police custody by investigators from the National Anti-Fraud Office (ONAF), a branch of the Customs Directorate. As a result, he is expected to face an investigating judge, potentially leading to an indictment on multiple counts.

In addition, authorities have expressed concerns about Durov’s potential flight risk, given his substantial financial resources and the gravity of the charges against him. Subsequently, the investigation reportedly centers on the lack of moderation on Telegram and the platform’s perceived role in facilitating various illegal activities.

Investigators, consequently have argued that Pavel Durov’s actions, or lack thereof, have made the platform a haven for organized crime, including terrorism, drug trafficking, and pedophilia. This arrest, as a result, is seen as part of a broader effort by European authorities to crack down on secure messaging services that they believe are being used to facilitate criminal activities.

A large of tech industry leaders have also come out in support of Durov, including Elon Musk and Ethereum co-founder Vitalik Buterin.

TON Price Declines Over 15%

In the wake of Durov’s arrest, Toncoin has experienced a significant price drop. At the time of reporting, the cryptocurrency was down over 17%, trading at $5.66. Toncoin is closely associated with the Telegram ecosystem, and the legal troubles facing its founder have clearly rattled investor confidence.

However, this decline has come as a surprise with optimism for TON price fading. In a CoinGape report, the Toncoin price was predicted to rally on the back of new projects that could attact investors, however, this shift has pushed it to a two week low.

The sharp decline in Toncoin’s value reflects market uncertainty regarding the future of Telegram and its associated projects. Investors are likely concerned about the potential legal and regulatory repercussions for the platform and its related assets, should the charges against Durov lead to significant legal action.