Telegram’s native crypto coin, Toncoin (TON), experienced a significant dropoff over the weekend in price, falling 17%. The arrest of Telegram’s CEO and founder Pavel Durov in France is the most likely catalyst. Durov was detained as he stepped off his private jet at Le Bourget airport in France on Saturday. Durov’s arrest significantly impacted the price of Toncoin, which is now trading at $5.54.
The French authorities dubbed the OFIM, issued the warranty against Durov. The OFIM sectoral unit deals with handling cases related to violence against minors. French authorities allege that Telegram’s lack of moderation, poor cooperation with law enforcement, and the tools it offers (like disposable numbers and cryptocurrencies) make Durov complicit in drug trafficking, child exploitation crimes, and fraud.
Before the Telegram founder’s arrest, Toncoin had been on a hot streak in terms of growth. The asset was on a path to a $50 billion market cap in 2024, becoming one of the top performers of this year. However, in the hours after Durov was taken into custody, TON fell nearly 25%.
Also Read: Justin Sun Pledges $1 Million to Support Telegram’s Pavel Durov
According to CoinCodex, Toncoin is still adamant on its path to secure a new ATH by September. The token’s growth path is on a bumpy road now following the arrest of Pavel Durov, however, bulls remain optimistic that the coin will surge.
Durov could face charges for multiple offenses. These include terrorism, drug trafficking, complicity, fraud, money laundering, handling stolen goods, and child exploitation content. “Pavel Durov will end up in pre-trial detention, that’s for sure,” an investigator told TF1/LCI. “On his platform, countless crimes and offenses were committed, and he did nothing to moderate or cooperate,” another source familiar with the case added.