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Toncoin posted double-digit loss as French media reported that Telegram CEO Pavel Durov was arrested in the country.
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The arrest comes as French authorities consider Durov complicit in crimes organized via Telegram because of the platform's lack of moderation
Toncoin (TON) is down over 14.5% after French media reported that Pavel Durov, the CEO of Telegram, was arrested at Le Bourget Airport as part of a warrant issued by OFIM, an office of the French National Police, that's tasked with preventing violence against minors.
At the time of writing, Toncoin is currently trading above $5.75, down 14.5%, according to CoinDesk Indices data. The CoinDesk 20 (CD20), a measure of the performance of the largest digital assets, is flat, up 0.79%.
The warrant for his arrest stems from a criminal complaint by OFIM, an office of the French national police formed in November 2023, which considers Durov complicit because of Telegram's lack of moderation, in drug trafficking, distribution of child sexual abuse material (CSAM), and fraud due to Telegram's lack of moderation and cooperation with law enforcement, according to French network TF1.
Elon Musk, issued a post on X advocating for Durov's immediate release.
Telegram's PR office did not respond to a request for comment from CoinDesk.
“On his platform, countless crimes and offenses were committed for which he does nothing to moderate or cooperate,” TF1 quoted a law enforcement source as saying.
“For years, it has become the number one platform for organized crime,” another source who spoke with TF1 said.
Sources that spoke with TF1 were surprised he came to France, as he knew he was a wanted man in the country.
The arrest was also confirmed by the BBC and Reuters.
UPDATE (August 25, 05:10 UTC): Adds Musk's tweet calling for Durov's release.