Cryptocurrency toncoin (TON) fell by 21% after the Pavel Durov’s arrest in Francefounder and CEO of Telegramin France. While the price seems to have stabilized in the last few hours, with a drop of only 1.2%, the altcoin sank 17.7% in 7 days.
According to various international media reportsDurov was arrested on Saturday evening at Le Bourget airport.north of Paris. Durov had arrived from Baku, Azerbaijan.
France’s OFMIN, an office charged with preventing violence against minors, had issued a arrest warrant for Durov in a preliminary investigation into alleged crimesincluding fraud, drug trafficking, cyberbullying, organized crime and promotion of terrorism, according to one of the sources.
Durov is accused of failing to take action to curb criminal use of his platform. “Enough of Telegram’s impunity,” said one of the investigators, adding that they were surprised that Durov came to Paris knowing that he was a wanted man.
Telegram defends its CEO
Telegram said on Sunday that its CEO has “nothing to hide”“Pavel Durov has nothing to hide and frequently travels to Europe,” the company said in a statement posted on the app, adding that Telegram “complies with EU laws… Its moderation is within industry standards.”
It should be noted that Durov’s brother, Nikolai, was the creator of the blockchain The Open Network, built on the Ethereum blockchain and whose native token is TON. Telegram was in charge of developing the blockchain in the initial stages of its life and later became independent through the TON Foundation.
The Open Network has shown its support for Durov on social network X with the hashtag #FREEDUROV and updating the account’s logo and profile pictures with the image of the so-called ‘Resistance Dog’. “Pavel Durov started this movement during his fight to maintain Telegram users’ privacy and protect freedom of expression,” the firm added.
On his side, Elon Musk, CEO of Tesla and owner of X, made another post calling for Durov’s immediate release.
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The similarity with Binance Coin
Analysts point out that TON could emulate the movements of Binance coin (BNB), Binance’s native token that was hit hard after the ruling against its former CEO, Chanpeng Zhao. The cryptocurrency fell more than 10% in the run-up to Zhao’s conviction and Binance’s fine, but is up more than 30% since its lows.
According to experts, the legal problems of such prominent figures as Durov or Zhao They often trigger a wave of panic selling by investors, as traders rush to protect their investments from potential consequences. However, once the initial shock has passed, the market reassesses the situation in a more rational way and prices tend to recover.
Source: Ambito
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