The price of Toncoin (TON), a cryptocurrency alternative to Bitcoin, plummeted by 16% on Sunday after the arrest of Telegram CEO and TON founder Pavel Durov.
Durov was apprehended by French authorities after arriving on a private jet at Le Bourget Airport, near Paris. The Russian-born entrepreneur, who resides in the UAE and holds French citizenship, was detained under a warrant related to alleged offenses associated with his messaging platform, Telegram.
Telegram has faced accusations of being less moderated than other social networks and messaging apps, allegedly facilitating illegal activities such as drug trafficking, child pornography, terrorism, and fraud. Additionally, Durov and Telegram have been criticized for their refusal to cooperate with authorities in curbing criminal activity on the platform.
According to Coinmarketcap, a leading crypto price tracking website, Toncoin’s value had dropped to around $5.67 by 12:00 GMT on Sunday, down from the $6.75-$6.80 range seen late Saturday. TON, the native cryptocurrency of the decentralized layer-1 blockchain The Open Network (TON), was initially launched as the Telegram Open Network. Although Telegram officially ended its involvement with the TON Blockchain in 2020 due to a court order from the SEC, TON remains closely associated with Telegram. The cryptocurrency’s market cap, which exceeds $14 billion, is still heavily influenced by Telegram’s popularity.