While the crypto markets continued to take a beating over the weekend, one coin is actually gaining ground. TON, which is associated with messaging app Telegram, popped 24% on the news that the app’s founder and CEO Pavel Durov has returned home to Dubai amid an ongoing investigation.
TON grew from $2.94 to $3.59 on Saturday as news broke that the Russian-born founder would be permitted to leave France, where he was being detained and slapped with several charges related to failing to prevent illegal activity on the platform. The currency continued to climb on Monday reaching $3.65 as Durov issued a statement for the first time since returning home, Bitcoin stayed flat.
“As you may have heard, I’ve returned to Dubai after spending several months in France due to an investigation related to the activity of criminals on Telegram,” Durov wrote on Telegram. “The process is ongoing, it feels great to be home.”
Durov will be required to return to France by Apr. 7.
Telegram began to develop TON—also known as The Open Network—in 2017, to allow its rapidly growing user base to quickly process transactions in the app using blockchain technology. It is now an integral part of the platform, used to pay for games, advertisements and transaction fees. It has amassed a market cap of over $8 billion.
Telegram and alleged criminal activities
Durov had been banned from leaving France since August after he was arrested near Paris last year.
Telegram has attracted nearly one billion global users since it was founded in 2013 through its emphasis on privacy and security. It was the company’s policy to not comply with government requests for user information until September when Durov reversed this policy in the wake of his arrest. French authorities say the app has been used for the distribution of child sexual abuse material, drug trafficking, fraud and other criminal activities.
Telegram previously said it was “absurd” to hold Durov responsible for criminal activities that occur on Telegram in a X post following his arrest. “It is absurd to claim that a platform or its owner are responsible for abuse of that platform,” the company wrote, adding that its moderation practices are “within industry standards and constantly improving.” The company did not immediately respond to Fortune‘s request for comment.
Durov’s arrest prompted backlash from the likes of Ethereum founder Vitalik Buterin and U.S. whistleblower Edward Snowden, who said the move was a politically-motivated attack on freedom of speech.
Durov has maintained his innocence throughout the investigation, writing on Telegram on Monday: “When it comes to moderation, cooperation, and fighting crime, for years Telegram not only met but exceeded its legal obligations.”
