Telegram, the widely-used messaging app, is facing increased scrutiny after its CEO, Pavel Durov, was arrested on August 24, 2024. Alongside this development, Telegram’s 2023 financial report has revealed that the company held around $400 million in digital assets by the end of last year, highlighting its significant involvement in the cryptocurrency sector.
Pavel Durov, the founder and CEO of Telegram, is at the center of the current controversy. His arrest has raised questions about the future of both Telegram and its associated cryptocurrency projects, particularly The Open Network’s Toncoin (TON).
The financial report was disclosed as part of Telegram’s 2023 year-end statement, coinciding with Durov’s arrest on August 24, 2024.
The arrest took place at Le Bourget airport near Paris, France, while Telegram’s global presence, particularly in India and the United States, continues to grow.
Telegram’s financial statement has drawn attention to the company’s deep integration with the cryptocurrency world. In 2023, Telegram generated $342.5 million in revenue, with approximately 40% coming from digital asset-related activities. These activities included earnings from an integrated crypto wallet and the sale of digital collectibles such as usernames and virtual phone numbers. Despite this substantial revenue, Telegram reported an operating loss of $108 million, largely due to its heavy investments in these digital assets.
The arrest of Pavel Durov has caused significant uncertainty within the cryptocurrency community, particularly impacting Toncoin (TON). The value of TON dropped by over 20% following the news of Durov’s detention, as concerns grew about the stability and future of the TON ecosystem, which is closely tied to Telegram’s platform. Durov faces a range of serious charges, including terrorism, trafficking, conspiracy, fraud, and money laundering, which has further complicated the situation for Telegram.
Despite these challenges, Telegram has shown resilience, with its premium user base growing from four million at the end of 2023 to over five million. The company’s global reach remains strong, particularly in markets like India and the United States, even as it navigates these legal and financial difficulties.
