Telegram CEO’s arrest in France has piled pressure on cyprtocurrency, Toncoin. Telegram CEO, Pavel Durov was arrested in France last Saturday over issues bordering on lack of moderation.
Telegram is accused of not having enough mechanism to check the spread of false information, terrorism financing, child sexual abuse content and other criminal activities on the platform.
Following his arrest, Durov could face charges that may affect Telegram and its associated cryptocurrency Toncoin. Toncoin’s rise has been spurred by Telegram’s infrastructure, user base and reputation.
The arrest of Durov has raised questions about the social media platform’s future and its ownership thereby affecting confidence in the cryptocurrency.
Earlier today, Toncoin was trading at $5.77, down 14% from $6.77. Investors will be closely monitoring how the Durov’s arrest pans out and this could further erode confidence in the coin.
Pavel Durov was born in Russia and now lives in Dubai, where Telegram is based. He also has citizenship of the United Arab Emirates and France. He founded Telegram in 2013. Telegram has now grown into one of the major social media platforms after Facebook, YouTube, WhatsApp, Instagram, TikTok and Wechat.
Telegram has expressed hope for a swift resolution of the issues around the arrest noting that its CEO has nothing to hide.
It also debunked issues of lack of moderation emphasising that it has industry standard mechanism that ensures the best practices by its users.
