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

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As a long-time crypto investor with a keen interest in privacy-focused projects like TON, I find myself closely following the latest developments surrounding Pavel Durov and Telegram. The allegations against him, if proven true, raise serious concerns about the future of TON on Telegram, a project I’ve been keeping an eye on for quite some time.

Reports indicate that Pavel Durov, the founder and CEO of Telegram, has been accused of twelve offenses in France, primarily involving financial and cyber offenses, after being detained over the weekend.

Toncoin (TON), the digital currency tied to The Open Network backed by Telegram, dipped as much as 5% after Durov’s indictment by French officials was announced. According to information from crypto.news, TON was exchanging hands below $5.59, representing a drop of approximately 32% from its peak reached in June.

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

Durov’s supposed charges

After Durov’s detention at Le Bourget Airport close to Paris, details of purported offenses that a yet-unnamed individual, believed to be the founder, is suspected of having committed were disclosed.

Among the 12 accusations, there were three related to cryptocurrencies: “Offering unauthorized encryption services for secrecy, using an encryption tool without previous disclosure, and importing encryption tools without prior notification.”

If it’s true that Durov is accused of these offenses, the accusations seem to be related to TON, a blockchain system that’s built into Telegram’s private messaging service.

As a crypto investor, I found myself in a tricky situation when I learned that the person behind the project I’ve invested in was accused of money laundering, criminal complicity, and obstruction of justice. According to reports, the founder of this company might stay in custody until August 28 while investigations continue. If found guilty on these charges, he could potentially spend up to 20 years behind bars.

As things stand, the allegations that have been suggested against Durov are yet to be substantiated since the story is still unfolding.

The official charges against Pavel Durov have been made public:

— Baptiste Robert (@fs0c131y) August 26, 2024

Community blasts flawed logic used against Telegram CEO

Over the weekend’s arrest of Durov, wealthy individuals and advocates for cryptocurrency have voiced their criticism, viewing it as a violation of personal privacy rights in Europe.

Supporters such as Elon Musk and Justin Sun boosted the general call to release Durov and halt the probe into Telegram, with their voices joining a growing public outcry. The uproar on social media intensified even further once the alleged charges against Durov were made public.

Many critical onlookers generally agreed that the supposed logic behind Durov’s alleged offenses seemed illogical and could potentially be applied to numerous other innovators.

In simpler terms, they’re alleging that Durov played a part in all the wrongdoings committed by Telegram users. However, it should be noted that if every Internet company CEO were held responsible for their users’ actions under this reasoning, they would all be implicated in similar activities.

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

Will TON on Telegram survive?

Although Durov has gained substantial backing, the legal hurdles he encounters cast doubt on the potential future of TON within Telegram.

The prosperity of TON heavily relies on its association with Telegram and the vast user base of 900 million. A potential legal issue might present a substantial obstacle for The Open Network. Yet, if Durov emerges victorious, it could boost the popularity of TON, marking an important win for cryptocurrencies and decentralized privacy movements.

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2024-08-26 21:10