France Prepares to Indict Telegram CEO... "Up to 10 Years Imprisonment"

Charges Including Online Sexual Crimes and Drug Trafficking Conspiracy

Telegram CEO Pavel Durov was indicted in France on the 28th (local time) on charges including online sex crimes and drug trafficking conspiracy. Given that Telegram, which has captivated hundreds of millions of users worldwide by championing strict anonymity and confidentiality, is now under scrutiny, a significant impact is expected. Durov's legal team, including representatives from the cryptocurrency industry, has voiced concerns over potential infringements on freedom of expression by authorities.

[Image source=AP Yonhap News]

The Paris prosecutor's office announced in a statement that CEO Durov has been preliminarily indicted on charges of distributing child sexual exploitation material, conspiring in drug trafficking, providing and managing a platform for illegal transactions by criminal organizations, and refusing to cooperate with French investigative authorities.

Under French law, a preliminary indictment is a quasi-indictment issued by an investigating judge when there is reasonable cause to believe a crime has been committed but further investigation is deemed necessary. The preliminarily indicted suspect undergoes an investigation by the judge to specify the charges before a decision on formal indictment is made. This process can take several months to years.

The New York Times (NYT) noted, "Among the added charges, conspiracy to manage an online platform to aid illegal transactions by gang organizations can carry a prison sentence of up to 10 years." CEO Durov is currently released on bail after paying 5 million euros (approximately 7.4 billion KRW). However, he must report to the police station twice a week. French authorities have also imposed a travel ban on CEO Durov.

Durov's legal team immediately protested. Attorney David Olivier Kaminsky stated, "It is completely absurd to think that a social media representative could be involved in crimes committed on a messenger service," adding, "Telegram fully complies with European regulations related to digital technology with all due diligence."

According to the Associated Press (AP), the French judicial investigation into CEO Durov began in February. At that time, the French prosecutor's office requested Telegram to disclose the identity of suspects related to child sexual exploitation material cases but received no cooperation. In March, an arrest warrant was issued for CEO Durov. Subsequently, CEO Durov was arrested on the 24th at Paris Le Bourget Airport. It is also reported that an arrest warrant was issued for Nikolai Durov, CEO Durov's brother and Telegram co-founder.

This preliminary indictment of CEO Durov by French judicial authorities is expected to cause significant repercussions as it holds a social networking service (SNS) CEO accountable for crimes occurring on their platform. Telegram, created by the Durov brothers in 2013, has been enthusiastically welcomed by users for its thorough encryption and anonymization, which resist regulatory censorship. According to data analytics firm Demand Sage, Telegram's global monthly active users (MAU) reached approximately 800 million last year, growing over 40% annually since its launch in 2013. It is projected to surpass 1 billion users by the end of this year.

Telegram's unique confidentiality is also a key factor attracting intense interest from the cryptocurrency market. The NYT reported, "It is hard to imagine cryptocurrency investors without Telegram," noting that there are 15 coins and crypto assets linked to Telegram. Following CEO Durov's arrest, Bitcoin prices plunged more than 5% on the 27th, falling below the $60,000 mark. The price of Toncoin, issued by Telegram itself, dropped more than 20% immediately after CEO Durov's arrest and is currently trading in the mid-$5 range.

Voices of concern have been raised from the cryptocurrency industry and advocates of anonymity and freedom of expression. David Kaye, who served as the UN's special rapporteur on freedom of expression worldwide, warned, "The indictment of Durov could mark a major event ushering in an era of government restrictions and pressure on online expression," cautioning that authoritarian states might use this as a precedent to target senior technology executives.