Brazil is suspending the Telegram messaging service throughout the country after the company failed to provide authorities with requested data about neo-Nazi groups that operate on the platform, justice officials said
Several Telegram app crypto tokens plunged over the last 24 hours after news of Pavel Durov's arrest spread. AFP

KEY POINTS

  • Durov was arrested over a probe into alleged crimes conducted on Telegram
  • GMEE was the hardest hit among Telegram app coins, shedding over 12%
  • Some crypto users have said Durov's arrest is a hurdle to championing free speech

Telegram CEO Pavel Durov's arrest over the weekend has left a deep wound in the popular but controversial social media platform's community. The news has also apparently affected cryptocurrencies utilized on Telegram apps – applications built on the platform that integrate blockchain technology and crypto.

Durov arrested in France

French police detained Durov, who is also the co-founder of the first iteration of The Open Network (TON) blockchain, at an airport near Paris on Saturday, sending Toncoin ($TON) prices plummeting.

He was taken into custody over an investigation into alleged crimes conducted on Telegram, including organized crime, the promotion of terrorism and drug trafficking among others. Interestingly, Durov has had run-ins with the Kremlin, including an instance where he was asked to hand over the personal data of users to Russia's security services (FSB), but he refused.

Arrest news rings across crypto community

Several prominent figures in the crypto space have slammed Durov's arrest, including Bitcoin advocate and former presidential candidate Robert F. Kennedy Jr., who said the tech executive's arrest only means that the need to champion free speech has become more urgent now more than ever.

Some crypto users have also suggested that cases such as that of Durov's are a possible reason why Satoshi Nakamoto, the creator of Bitcoin, opted to remain anonymous even when he already moved on from the project.

Telegram app coins plunge

Since Saturday, several altcoins – cryptocurrencies after Bitcoin – on Telegram apps have plummeted, as per data from CoinGecko's list of the largest Telegram app coins by market value.

ChainGPT, an advanced AI model designed for blockchain and crypto use, was among the communities hit by the bad news. The CGPT token's price plunged by 3.3% in the last 24 hours.

PunkCity (PUNK) shed over 3% in the last day, while DexCheck AI (DCK) lost some 4% Sunday. Several other Telegram app tokens in the top 10 were down in the last 24 hours, but Gamee (GMEE) bled the most, losing 12.5% of its value in the past day. Gamee is a Telegram gaming platform that helps users onboard into the Web3 space through its GameFi token.

GMEE price early Aug 26 2024
The GMEE token lost over 12% in the past day. CoinGecko

As of writing, the said coins are still in the red. It remains to be seen whether they will recover in the coming days.

The case of free speech

Many commenters on Durov's arrest have linked the matter to government power over free speech. Prominent podcaster Lex Fridman said "governments should not engage in censorship," adding that Durov's detainment "is a blatant and deeply troubling overreach of power."

On the other hand, other observers believe the matter is not related to free speech. Author Alex Voigt said Durov was arrested because the platform "repeatedly violated local law."

Meanwhile, $TON prices have since recovered slightly after shedding over 10% upon news of Durov's arrest. The TON network's native cryptocurrency is up by over 4% as of early Monday.

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