Why the Crypto World Stands by Telegram's Founder Amid Arrest

Summary:

Pavel Durov's arrest sparked a strong reaction from the crypto community.
Telegram is critical for crypto entrepreneurs and investors.
The app supports the Toncoin cryptocurrency, valued at around $13 billion.
Durov's situation highlights Telegram's role in facilitating free speech.
Telegram has become a key platform for high-stakes deal-making in the crypto industry.

A Surge of Support for Pavel Durov

After Pavel Durov, the founder of the messaging app Telegram, was arrested in France, a significant wave of support emerged from the crypto industry. The CEO of Tether expressed concern over the situation, while crypto enthusiasts rallied under the hashtag #FreeDurov, viewing the arrest as an attack on free speech.

Telegram's Integral Role in Crypto

Telegram has become the go-to platform for crypto entrepreneurs and investors, with prominent figures such as Justin Sun relying on it for communication. The app facilitates deal-making, marketing, and even crisis management for companies like Three Arrows Capital and FTX. A cryptocurrency linked to Telegram, Toncoin, is now one of the top 15 cryptocurrencies globally, valued at around $13 billion.

Durov's Arrest and Industry Reaction

Durov was detained as part of a broader investigation into criminal activities on Telegram, including money laundering and the distribution of illegal content. While he has not been formally charged, Telegram maintains its compliance with European laws. The app boasts 900 million users and is particularly popular in regions with limited free speech, such as Ukraine and India.

A Cultural Connection

There has always been a natural kinship between Telegram and the crypto community, both valuing free expression and resisting government oversight. Telegram even attempted to launch its own cryptocurrency, Grams, which resulted in legal challenges from the SEC. After settling for $18.5 million, Telegram pivoted to supporting Toncoin, enhancing its integration into the crypto ecosystem.

High-Stakes Communication

In the crypto world, Telegram is not just for casual chats; it is a platform for high-stakes deal-making that typically occurs through emails in traditional industries. Notably, during the collapse of Three Arrows, Telegram was used to manage complex financial discussions.

Telegram in Legal Spotlight

The app's relevance extends to legal cases within the crypto sector. During the trial of Sam Bankman-Fried, Telegram group chats were highlighted as key evidence in the case, demonstrating the platform's significance in the crypto space.