Key takeaways
- The arrest of Pavel Durov in France led to an 18% drop in the value of Toncoin.
- French authorities link Durov to crimes facilitated by Telegram’s lack of moderation.
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The price of Toncoin (TON) fell 18% to below $5.53 on Sunday after news broke that Pavel Durov, the co-founder and CEO of Telegram, was arrested at Le Bourget Airport in France, according to data from CoinGecko. Similarly, the value of Notcoin (NOT) fell 21% as concerns over Durov’s legal troubles grew.
On August 24, Durov was arrested by French police at Le Bourget airport after arriving on his private jet from Azerbaijan, as reported by the BBC. His arrest was carried out under a warrant issued by OFIM (French Office for Investigation into Violence Against Minors).
The move comes as part of a police investigation into Telegram’s alleged lack of moderation, which allowed criminal activity to flourish on the platform, the report said. French authorities say Telegram’s lack of oversight has enabled illicit activity, raising concerns about the platform’s role in facilitating such behavior, particularly given its massive user base of nearly a billion people.
After the news was announced, the value of Toncoin suffered a sharp decline. TON’s market capitalization fell from $17.1 billion to around $14 billion in a matter of hours, according to data from CoinGecko.
Toncoin is a crypto asset closely related to the Telegram messaging app and its founder Pavel Durov. TON is the native currency of The Open Network, which was initially developed by Telegram but later launched independently. TON integrates with Telegram, allowing users to use Toncoin for payments, value storage, and access to decentralized applications within the Telegram app.
Notcoin, running on the TON blockchain, is also known for its integration of cryptographic features in the Telegram app. The crypto-based idle game has skyrocketed in popularity on Telegram this year, amassing over 35 million users in just five months.
Notcoin’s price also fell sharply after Durov’s arrest. NOT is currently trading at around $0.009, down 20% in the last 24 years. hours during The TON price is trading at around $5.6. The value of Toncoin is about 31% off its all-time high of $8.2 set in mid-June.
The broader cryptocurrency market remains relatively stable, posting a slight increase of 1.1% in one day. There was little change in the price of bitcoin over the past 24 hours, trading near $64,000 at press time.
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