Toncoin (TON) Plunged by 20.6% After Telegram Founder Pavel Durov Was Arrested

The coin has become integrated with Telegram, the messenger app that boasts nearly one billion users and aspires to be a Web3 innovator.

Toncoin (TON) price crashed by 20.6% on Aug. 25 after news broke that Telegram founder Pavel Durov is facing 20 years in prison over terrorism, drug trafficking, fraud, money laundering and child abuse content charges in France.

The massive sell-off in the TON market occurred after French authorities arrested Durov at Le Bourget airport near Paris on Friday, Aug. 23. Several French media outlets reported on Durov's arrest, adding that he is set to appear in court today.

The 39-year-old billionaire Russian exile may face multiple criminal charges, including terrorism, drug trafficking, fraud, money laundering, and child abuse content, according to the reports.

Durov could face up to 20 years in prison for not complying with the content moderation law in the country, which could explain the sharp sell-off in the TON market.

Related: Elon Musk says he's 'proud' of Telegram for standing up to content moderation

As Telegram boasts nearly 1 billion users and aspires to be a Web3 innovator, one of its key developments is the Toncoin, or TON — an acronym for Telegram Open Network.

The TON blockchain was initially conceived by Telegram in 2018, aiming to integrate the new cryptocurrency, then called Gram, into the messenger app. However, the project faced legal hurdles and was eventually sold to a group of investors in 2021.

After the sale, the new TON community re-launched the blockchain and cryptocurrency under the name Toncoin, integrating it into Telegram through a bot. Despite the changes, the asset still carries the legacy of Telegram's initial endeavors.

Elon Musk, the owner of X.com, expressed his support for the Telegram founder, according to the BBC. Musk has faced criticism over content moderation, and in this instance, he appeared to mock Europe's laws for what he argues is free speech censorship.

“It’s 2030 in Europe and you’re being executed for liking a meme.”

POV: It’s 2030 in Europe and you’re being executed for liking a meme https://t.co/OkZ6YS3u2P

Telegram has come under fire for allowing users to openly share far-right and neo-Nazi views on the platform to the point where groups used the app to organize riots in the United Kingdom earlier this month.

The specialized unit of the French National Police, known as OFIM, had filed a criminal complaint against Durov, alleging that he was complicit in Telegram's lack of content moderation when it comes to fraud, drug trafficking and the distribution of child sexual abuse material.

Meanwhile, the TON official account on X stated that the TON community will “stand firmly” by Durov as he is committed to freedom of speech.

“We believe his efforts to promote an open and decentralized internet will continue to inspire millions,” the TON community added in its message to Durov.

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