Toncoin Plunges Again As Telegram CEO Arrest Charges Released

Telegram CEO Pavel Durov's arrest continues to haunt the cryptocurrency community, with Toncoin ($TON), the native token of The Open Network (TON) blockchain, plunging once more Monday night.

TON lost nearly 8% Monday night and remains in the red as of early Tuesday, data from CoinGecko shows. At one point overnight, the digital coin nearly plummeted to $5. It has since climbed to around $5.40 but remains down by 6% in the last 24 hours. Current TON prices are over 34% lower than the digital asset's all-time high price of $8.25, which was achieved in mid-June.

Durov co-founded the first iteration of the TON network with his brother Nikolai. The blockchain is integrated with Telegram and there are many crypto teams and groups using the popular yet controversial social media platform.

The coin already shed more than 20% over the weekend after news emerged regarding Durov's arrest in France over his alleged failure to ensure that criminal activity is prevented within Telegram.

Amid mounting calls for Durov's release, French President Emmanuel Macron has responded.

Macron Insists Durov's Arrest Due to Judicial Probe

Macron took to X Monday to deny "false information" surrounding the arrest of Durov, a key figure in the crypto space. His denial came as some crypto users said the 39-year-old tech magnate was detained as part of efforts to restrain free speech.

"The arrest of the president of Telegram on French soil took place as part of an ongoing judicial investigation. It is in no way a political decision. It is up to the judges to rule on the matter," Macron said.

He also said his country remained "deeply committed to freedom of expression and communication, to innovation, and to the spirit of entrepreneurship."

Tech Community Throws Doubt on Macron's Statement

The broader tech community is rallying behind Durov and some prominent figures in the industry have thrown doubt over Macron's statement regarding France's commitment to free speech.

Tesla CEO and SpaceX founder Elon Musk urged Macron to provide more details about why Durov was arrested, saying "it would be helpful to the global public."

Lawyer and YouTuber David Freiheit accused Macron of not putting value on freedom of expression. "You are a dictator just like the other dictators of European history. You just have a softer accent," he said.

Rumble CEO Chris Pavlovski said the online video platform Rumble has "a letter from France" to prove that Macron wasn't committed to free speech. He further revealed that Rumble had to shut down in the country because of France's lack of commitment.

YouTuber Dave Lee questioned why Durov was arrested immediately "if it is just an investigation."

Prosecutor Releases Document on Official Charges

Following Macron's post, the Paris prosecutor's office released documents that showed the official charges against Durov. According to a translation by Money Control, the serious allegations include "complicity in web-mastering an online platform to facilitate illegal transactions within an organized group."

Durov is also accused of being complicit in the distribution of p**nographic images of minors in an organized group, as well as allegedly refusing to communicate with authorities over documents and information necessary to intercept on issues backed by French laws.

Telegram previously said in a statement that the platform abides by laws in the European Union and its CEO "has nothing to hide." The social media company said allegations that Durov was responsible for the abuse of Telegram was "absurd."