Toncoin Surges 17% in 24 Hours – Will Telegram’s Pavel Durov’s Legal Battles Trigger a Drop?

Telegram founder Pavel Durov has been granted temporary permission to depart France, but his crypto privacy case is not finished yet. Charged with complicity in offenses like money laundering and drug dealing, Durov’s case has generated debate around Web3 developer rights. According to many, developers cannot be blamed for the ways users use encrypted platforms, and this is a very important legal tech battle.

Legal Accusations and Industry Reaction

Durov was arrested in August 2024 at Paris’s Le Bourget airport. Prosecutors say that Telegram’s encryption enables crime to thrive and holds Durov partially accountable. He could be fined €500,000 and imprisoned for up to 10 years. 

The crypto privacy case brings to mind that of Alexey Pertsev. The Tornado Cash developer was arrested in the Netherlands for alleged money laundering facilitation. The allegations against Durov are problematic regarding blockchain regulation issues. Critics contend that decentralized platforms cannot be fully controlled by their developers.

While others think that increased attention is required, privacy groups believe that this will destroy innovation. With regulators tightening control, this legal tech battle could redefine how blockchain-based tools operate.

Impact on Crypto Markets and TON Analysis

The case has a free speech outcome. Durov has a history of resisting government control, most notably in a 2018 clash with Russian regulators. His supporters believe this case may be politically pushed. Dmitry Zair-Bek, a human rights lawyer, argues that the charges are an attempt to punish Durov for refusing to cooperate with intelligence agencies.

Chart 1 –  TON/USDT Live Price, published on TradingView, March 18, 2025. 

Durov’s departure to Dubai made headlines and resulted in an immediate market reaction. Telegram’s cryptocurrency, Toncoin (TON), went up 17% in 24 hours. It was indicative of strong investor confidence. Currently, TONUSDT shows an open price of $3.539, with a daily high of $3.539 and a low of $3.533. The closing price stands at $3.525, reflecting a 2.11% increase from the previous day. The 24-hour trading volume is 20.23 million, and the Relative Strength Index (RSI) is 52.65, indicating neutral market momentum.

Web3 Developers and the Future of Privacy

A major concern is how this case will impact Web3 developer rights. Historically, developers were seen as neutral entities responsible only for building technology, not for its misuse. On the other hand, authorities now contend that encryption platforms are accountable for illegal activity. 

The ongoing legal tech battle means companies must engage with regulators proactively. A recent report by Onesafe emphasized that decentralized platforms should push for “balanced regulations” rather than risk blanket crackdowns.

If Durov’s case results in stricter policies, developers may have to implement backdoors in encryption software. Many fear that this crypto privacy case will force Web3 projects to shift towards heavier moderation, potentially undermining the core principle of decentralization.

Future Implications for Crypto and Regulation

Durov’s situation highlights the broader blockchain issues facing crypto firms. Governments around the globe are heading towards stricter regulations to check financial crimes. The bigger question is, whether this crypto privacy case will be a precedent for holding developers accountable or stating their right to create secure, private systems.

For now, Durov’s legal battle continues. His permission to leave France extends to April 7, but the outcome could have lasting effects. The decision will either encourage stronger privacy protections or push companies towards greater compliance with government oversight.

Final Thoughts

The crypto privacy case brought by Pavel Durov represents a turning point in blockchain regulation. Whether he is convicted or released, the case will shape future policies on Web3 developer rights and encrypted communication. The crypto industry now faces a defining moment, balancing privacy, security, and compliance.