Telegram CEO’s Arrest Is Unlikely to Be the Last: Galaxy

The primary main arrest of a distinguished CEO of a messaging or social media firm might not be the final, Galaxy stated.

Telegram and Durov are seemingly to withstand takedown or info requests, the report stated.

A few of the prices could also be associated to Telegram’s integration with TON or the supposed use of the blockchain for unlawful actions, Galaxy stated.

The detention of Telegram CEO Pavel Durov in France is the primary main arrest of a distinguished messaging or social media firm boss for failing to adequately police his platform. It is unlikely to be the final, Galaxy Analysis stated in a report on Monday.

Governments have been hostile to cryptography and encryption for a while, the report stated after Durov was detained final weekend.

Telegram and Durov are seemingly to withstand takedown or info requests from Europe or, extra particularly, the French authorities, Galaxy stated. Telegram is carefully tied to The Open Community blockchain, or TON, which was initially an inside challenge on the platform earlier than being shut down and brought over by unbiased builders.

“The extent to which the costs in opposition to Pavel relate to TON, or Telegram’s integrations with TON, is unknown,” wrote Alex Thorn, head of company investigations at Galaxy.

TON can also be the native crypto token of the TON blockchain, previously referred to as the Telegram Open Community. The cryptocurrency fell greater than 14% after French media experiences of Durov’s arrest at Le Bourget airport.

“It’s doable that a number of the ‘fraud’ or ‘cash laundering’ prices may very well be resolved round Telegram’s integration with TON and/or TON’s use in unlawful actions,” Thorn wrote.

TON, the blockchain, has greater than 350 validators worldwide, however it’s unclear what number of of those Telegrams are lively, the report stated. Due to this fact, it isn’t clear “how resilient TON could be within the occasion that France or another main authorities tries to assault or take down the nation as a part of Durov’s arrest.”

Galaxy famous that TON’s worth is considerably depending on its integration with the messaging app.

How TON can keep away from being concerned with Durov and Telegram, or how different blockchains can keep away from being focused to help crime, will seemingly rely on how decentralized they’re, the report stated.

Durov may very well be launched as early as Wednesday, in accordance with French prosecutors. Nevertheless, betting platform Polymarket shouldn’t be assured it will likely be launched this month, with members betting on a launch earlier than the top of September.

Learn extra: Telegram CEO Pavel Durov may very well be free in October, in accordance with Polymarket Bettors