KEY POINTS
- Durov was arrested over a probe into alleged crimes conducted on Telegram
- GMEE was the hardest hit among Telegram app coins, shedding over 12%
- Some crypto users have said Durov's arrest is a hurdle to championing free speech
Telegram CEO Pavel Durov's arrest over the weekend has left a deep wound in the popular but controversial social media platform's community. The news has also apparently affected cryptocurrencies utilized on Telegram apps – applications built on the platform that integrate blockchain technology and crypto.
Durov arrested in France
French police detained Durov, who is also the co-founder of the first iteration of The Open Network (TON) blockchain, at an airport near Paris on Saturday, sending Toncoin ($TON) prices plummeting.
He was taken into custody over an investigation into alleged crimes conducted on Telegram, including organized crime, the promotion of terrorism and drug trafficking among others. Interestingly, Durov has had run-ins with the Kremlin, including an instance where he was asked to hand over the personal data of users to Russia's security services (FSB), but he refused.
Arrest news rings across crypto community
Several prominent figures in the crypto space have slammed Durov's arrest, including Bitcoin advocate and former presidential candidate Robert F. Kennedy Jr., who said the tech executive's arrest only means that the need to champion free speech has become more urgent now more than ever.
France just arrested Pavel Durov, founder & CEO of the encrypted, uncensored Telegram platform. The need to protect free speech has never been more urgent.
— Robert F. Kennedy Jr (@RobertKennedyJr) August 25, 2024
Some crypto users have also suggested that cases such as that of Durov's are a possible reason why Satoshi Nakamoto, the creator of Bitcoin, opted to remain anonymous even when he already moved on from the project.
Telegram app coins plunge
Since Saturday, several altcoins – cryptocurrencies after Bitcoin – on Telegram apps have plummeted, as per data from CoinGecko's list of the largest Telegram app coins by market value.
ChainGPT, an advanced AI model designed for blockchain and crypto use, was among the communities hit by the bad news. The CGPT token's price plunged by 3.3% in the last 24 hours.
PunkCity (PUNK) shed over 3% in the last day, while DexCheck AI (DCK) lost some 4% Sunday. Several other Telegram app tokens in the top 10 were down in the last 24 hours, but Gamee (GMEE) bled the most, losing 12.5% of its value in the past day. Gamee is a Telegram gaming platform that helps users onboard into the Web3 space through its GameFi token.
As of writing, the said coins are still in the red. It remains to be seen whether they will recover in the coming days.
The case of free speech
Many commenters on Durov's arrest have linked the matter to government power over free speech. Prominent podcaster Lex Fridman said "governments should not engage in censorship," adding that Durov's detainment "is a blatant and deeply troubling overreach of power."
Arrest of Pavel Durov is a disturbing attack on free speech and a threat not just to Telegram but to any online platform.
— Lex Fridman (@lexfridman) August 25, 2024
Governments should not engage in censorship. This is a blatant and deeply troubling overreach of power.
On the other hand, other observers believe the matter is not related to free speech. Author Alex Voigt said Durov was arrested because the platform "repeatedly violated local law."
All the information we have confirms that the arrest was authorised because Durov and Telegram have repeatedly violated local law, laws we all agree to and although I find the measure drastic, it doesn't change that fact.
— Alex (@alex_avoigt) August 26, 2024
Laws are laws and every social platform should agree to…
Meanwhile, $TON prices have since recovered slightly after shedding over 10% upon news of Durov's arrest. The TON network's native cryptocurrency is up by over 4% as of early Monday.
