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Troubles Mounting for Telegram CEO Pavel Durov
Home Articles More Troubles For Durov As South Korea Launches Fresh Probes And FT Reveals Telegram’s Financials

More Troubles For Durov As South Korea Launches Fresh Probes And FT Reveals Telegram’s Financials

Utsav Kumar
Utsav Kumar
Utsav Kumar
Author:
Utsav Kumar
Editor
Utsav is the senior news editor at Bankless Times, bringing over 8 years of experience in digital journalism. He leads the editorial team by managing, editing, and sourcing impactful news stories for our readers. With a background in crypto-focused data analytics, Utsav excels in live market reporting, offering insights into the risks and opportunities that help our readers make informed decisions.
September 2nd, 2024
Editor:
Utsav Kumar
Utsav Kumar
Editor:
Utsav Kumar
Editor
Utsav is the senior news editor at Bankless Times, bringing over 8 years of experience in digital journalism. He leads the editorial team by managing, editing, and sourcing impactful news stories for our readers. With a background in crypto-focused data analytics, Utsav excels in live market reporting, offering insights into the risks and opportunities that help our readers make informed decisions.

Troubles seem to be mounting for Pavel Durov and Telegram. On Monday, Reuters reported citing South Korea’s Yonhap news agency, that the Korean Police is investigating Telegram’s complicity in “distribution of sexually explicit deep fake content.”

While Telegram openly contends that it moderates illegal pornography, there’s been no official statement from the company concerning the fresh investigations announced by the Korean authorities.

This comes a week after Pavel Durov, Telegram CEO and Co-founder was arrested by the French authorities for “organised crime.” While the investigations are ongoing, and Durov has been released from custody, he is banned from leaving France until further notice.

Other Countries Investigating Telegram

Following the arrest and charges made public against Durov in France, many other countries have launched similar investigations. Last week, it was widely reported that Indonesia was planning a ban on Telegram as the authorities had put the messaging app under scrutiny for promoting gambling and pornography. 

Indian authorities also launched a scrutiny against Telegram last week, triggering widespread fears that the instant messaging app might get banned in the country. While the Indian government has not issued an official statement concerning the ban per se, the app is under scrutiny and its outcome will decide the future of Telegram in India. Following a similar scrutiny, the Indian government had previously banned TikTok, a Chinese video hosting platform.

Financial Times’ Reveal, Telegram’s Crypto Connection And Mounting Negative Publicity

Until just a few days ago, the press surrounding Telegram was largely positive with news covering the apps’ plans to integrate crypto payments and allow developers and creators to launch their mini-apps on the TON network

However, over the past few days, there has been an extensive negative media campaign which may have caused governments across the world to feel forced to launch investigations into the workings of Telegram.

The latest in the series of “media-led” investigations into Telegram’s financials and operations, is a report from the Financial Times which uncovers the messaging app’s earnings and other financial details. 

Latching on to the FT report, Fortune was quick to question Telegram’s valuation which stands at $30 billion.

“The company had revenue of only $342 million and made a net loss of $259 million in 2023. That would make Telegram unlikely to be worth anywhere near $30 billion,” read a report published by Fortune about an hour ago.

The report claims that the majority of Telegram’s income comes from “crypto-related” business before ending it with a reminder citing AFP that Durov potentially faces 10 years in prison. 

Hunting Free Speech Or Safeguarding Citizens?

The debate around free speech is becoming more intense – regardless of which side of the political spectrum you are.

After Durov was arrested, many from across the globe saw it as an act of aggression against free speech claiming that Durov was being purged because his company would not share user data with government authorities.

So far, it is also unclear how Telegram managed to operate in these jurisdictions for so long and how they have explicitly violated the local laws – if any.

That said, the nature of the charges levelled against Telegram and its CEO are equally serious. While free press and speech is essential, using technology for illicit activities under the garb of “right to privacy,” must have some checks. 

But, should these checks be limited to certain companies? Can a government use these tools designed to check or limit free speech to intimidate publishers and tech CEOs?

If Telegram is under investigation – and fairly so – shouldn’t there also be an equally fair investigation to determine if Durov’s arrest was necessitated because the authorities were truly investigating an organised crime and by no means intending to sabotage free speech?

The core of the issue is more complicated than it seems. However, with the ongoing “media-probes,” becoming more frequent against Telegram, it is unlikely that the company, the TON project, and the broader crypto market will not feel the heat.

Note: The views expressed in this article belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual.

Contributors

Utsav Kumar
Editor
Utsav is the senior news editor at Bankless Times, bringing over 8 years of experience in digital journalism. He leads the editorial team by managing, editing, and sourcing impactful news stories for our readers. With a background in crypto-focused data analytics, Utsav excels in live market reporting, offering insights into the risks and opportunities that help our readers make informed decisions.