Telegram-linked cryptocurrency loses $2.7 billion after CEO's arrest
Toncoin, a digital asset associated with the blockchain project, The Open Network (TON), has experienced a significant market value loss of approximately $2.7 billion. This financial setback follows the arrest of Pavel Durov, co-founder of Telegram Messenger LLP, on charges related to alleged criminal use of his messaging platform. Durov was apprehended at a Paris airport on Saturday, causing Toncoin's value to plummet by over 20%.
Toncoin's value dips amid Durov's legal woes
The Open Network (TON), which is linked to Telegram, has access to the messaging app's 900 million monthly users. This partnership aims to facilitate services like in-app payments and games. Despite the foundation behind TON asserting its independence from Telegram, their connection has significantly influenced Toncoin's market performance. As of Monday morning in Singapore, Toncoin was trading at $5.69, marking a 16% decrease due to the ongoing controversy surrounding Durov.
Telegram defends its compliance with European laws
In response to Durov's arrest, Telegram issued a statement affirming its adherence to European laws, including the Digital Services Act. The company emphasized that Durov has "nothing to hide." Richard Galvin, co-founder of hedge fund DACM, stated it's "too early to tell" what impact Durov's arrest will have on Telegram in the long term. He noted that the weekend market reaction "factored this uncertainty into the TON price" for now.
TON shows solidarity with Durov amid controversy
TON has publicly expressed support for Durov by using the hashtags #FreePavel and #FREEDUROV on X, and changing its logo to "Resistance Dog." Despite the recent market value loss, Toncoin's price had more than tripled in the past year. The token currently holds a market value of around $14.4 billion, per CoinGecko. However, data from DefiLlama reveals the value of assets locked on the TON blockchain has now dropped to $661 million, from a peak of $1.1 billion last month.
