The founder of Telegram, Pavel Durov, has been granted temporary permission to exit France, yet the preliminary charges against him pose significant concerns for the cryptocurrency community.
On March 13, a French court permitted Durov, who is also the CEO of the encrypted messaging platform Telegram, to travel to Dubai, where he had previously lived. He has been in France since August 2024, following his arrest at Le Bourget airport in Paris.
Durov is part of an inquiry that includes allegations of negligence and complicity in serious crimes such as drug trafficking, money laundering, child exploitation, and terrorism. If found guilty, he could face a maximum of 20 years in prison.
Furthermore, Durov’s situation raises critical questions about developers’ accountability for the cryptographic platforms and tools they create, a well-recognized issue in the cryptocurrency sector.
Is Durov accountable for actions on Telegram?
The preliminary accusations against Durov suggest that he bears some responsibility for the alleged illegal activities facilitated by the platform’s encryption and cryptocurrency features.
This scenario may resonate with those familiar with the case of Alexey Pertsev, the developer behind the cryptocurrency mixer Tornado Cash. Similar to Durov’s plight, prosecutors argue that Pertsev is liable for the illicit acts that occurred on his platform, particularly money laundering.
In 2022, Pertsev was arrested in the Netherlands and is currently released on bail while awaiting trial.
Related: Pertsev’s bail described as a ‘critical step’ toward obtaining a fair trial, according to defense
In both instances, members of the cryptocurrency community have recognized the potential implications for free speech and privacy, extending their support to the accused executives.
Jose Fabrega, the marketing head at Ethereum-based blockchain Metis, remarked that Durov’s arrest is reminiscent of the Tornado Cash case.
Source: Jose Fabrega
Natalia Latka, the public policy and regulatory affairs director at a blockchain analysis firm, previously stated that developers have historically been viewed as neutral creators of tools, accountable for their technical functions, but not for how those tools are utilized.
However, she noted that this perspective is shifting with the rise of decentralized tools that challenge conventional regulatory frameworks.
This dilemma places decentralized platforms in a “challenging position,” as pointed out by crypto platform Onesafe in a blog entry on March 17. They emphasized the necessity for these platforms to understand the legal frameworks guiding their operations and to engage with regulatory authorities.
They also labeled Durov’s situation as a “crucial moment” for the cryptocurrency sector, urging crypto companies to foster more “balanced regulations” and to support advocacy groups.
Durov himself stated on March 17 that Telegram has “not only fulfilled but surpassed its legal responsibilities.”
Implications for free speech
Many observers and critics have expressed concerns regarding Durov’s arrest, contemplating its implications for free speech and speculating if there might be political motivations behind the arrest.
Chris Pavlovski, the CEO of the alternative video-sharing platform Rumble, indicated that Durov’s situation was the tipping point for him and his company, which had previously clashed with French authorities over censorship matters.
Source: Chris Pavlovski
Gregory Alburov, an investigator for the Anti-Corruption Foundation linked to the late Russian opposition figure Alexey Navalny, stated that this case “is not only profoundly unjust (as Durov is clearly not involved in terrorism or arms trafficking), but it also represents a significant threat to freedom of speech.”
Durov’s past confrontations with regulators, notably in 2018 when he ignored a request from the Russian telecom regulator, have led many to suspect that the charges may be politically influenced.
While the French President has publicly asserted that the case is not an attack on Durov, a human rights lawyer and leader of an organization dedicated to fighting for civil rights disagrees.
Related: Free speech and online privacy: Durov’s ascent to leadership
“Durov is effectively being targeted for his commitment to user privacy and, naturally, for his refusal to cooperate with intelligence agencies,” he remarked.
No matter the underlying motivations, the repercussions of the case will undoubtedly impact future platforms. A conviction may intimidate platforms and their leaders into more aggressive moderation, verging on censorship, whereas an acquittal could encourage others to disregard obligations to regulators and public safety.
Durov’s temporary leave to Dubai is reportedly valid until April 7. The French prosecutor’s office has yet to issue any public comments regarding the ongoing case.
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