Pavel Durov, the founder and CEO of Telegram, was arrested in France two days ago on August 24th, at Paris-Le Bourget Airport. French authorities detained Durov as part of an ongoing investigation related to serious allegations involving the use of the Telegram platform for illegal activities, including money laundering, drug trafficking, and the dissemination of child exploitation material.

Durov, who holds dual citizenship in France and Russia, was taken into custody shortly after landing from Azerbaijan. The arrest was carried out by the French National Anti-Fraud Office, which is associated with the French customs department. The charges stem from concerns that Telegram’s lax moderation policies may have enabled these illegal activities on the platform.

Experts weigh in

The arrest has sparked significant controversy and has been met with strong reactions from various figures, including Elon Musk, who expressed support for Durov using the hashtag #FreePavel. Additionally, some critics have raised concerns about the broader implications for privacy and free speech, given Telegram’s reputation as a platform that prioritises user privacy.

— Elon Musk (@elonmusk)

Speaking to SiGMA News and wishing to remain anonymous, an industry operator commented: “We believe that the success and reliability of Telegram as a platform are not solely dependent on individuals. Telegram is a robust and well-established platform that has demonstrated its value and resilience over time.

We remain confident that Telegram-based solutions will continue to be a viable and secure alternative for online casinos. This recent event does not diminish our trust in the platform, and we believe that Telegram casinos will continue to offer the same level of safety and entertainment as before.”

Despite the arrest, Telegram has maintained that it complies with EU laws, including the Digital Services Act, and that it continues to operate normally. The company has emphasised that it is absurd to hold the platform or its CEO responsible for how users might misuse the service.

“I believe the arrest is precedent-setting, demonstrating to other tech companies and platforms that any attempt to resist government pressure could lead to severe consequences.”
ALEXANDER SANTINO, iGaming expert

“Telegram is not just a messenger; it’s a multi-platform, incredibly convenient powerhouse that combines cloud storage, an integrated crypto wallet, channels and groups, a variety of bots, and APIs. In our industry, the number of Telegram casinos, which allow full-scale gaming without leaving the platform, has been growing rapidly in recent months!” Alexander Santino, an iGaming expert, also spoke with SiGMA News: “Of course, the development of such an ecosystem couldn’t go unnoticed or unpunished by the authorities of various countries. The arrest of Pavel Durov could be a serious blow to freedom of speech and the security of user data. Telegram, known for its steadfastness in protecting privacy and resisting government pressure, has long been a bastion of free speech for millions of users around the world. To incriminate Durov with porn and drugs is akin to holding Google accountable for similar content found in its search results. I believe the arrest is precedent-setting, demonstrating to other tech companies and platforms that any attempt to resist government pressure could lead to severe consequences. Will Durov serve real time? I could be wrong, but something tells me that most likely he will not. Just a part of the demands will be met, and someone will gain access to Telegram’s information.” Durov’s arrest could have significant implications for the platform, including Telegram-based casino solutions and other industry applications, primarily because of the increased scrutiny on Telegram’s operations and its content moderation policies. Telegram has become a popular platform for various decentralised activities, including cryptocurrency gambling and casino solutions. These activities have thrived in part due to Telegram’s reputation for privacy and its relatively lenient approach to content moderation.

Increased regulatory scrutiny and possible disruptions

Durov’s arrest may prompt regulators and law enforcement agencies to increase their scrutiny of Telegram, especially regarding activities that involve gambling or other financial transactions. Casino solutions operating on Telegram could face stricter oversight and may be forced to comply with more rigorous regulations, which could impact their operations. If Telegram is pressured into enhancing its content moderation or if its operations are disrupted due to legal challenges, casino solutions on the platform could experience interruptions. For instance, if Telegram were required to implement stricter controls or monitoring, this could affect the seamlessness and privacy that have made these casino solutions attractive to users.

User trust and privacy concerns, impact on cryptocurrency integration

Speaking to SiGMA News, white label casino and gaming platform Kzing commented, “While the arrest of Telegram’s CEO is a significant development, the long-term implications for Telegram-based casino solutions remain uncertain. Trust and security are paramount in the iGaming industry, and any disruption in leadership could raise concerns among users and operators about the platform’s stability and reliability. However, it’s important to note that the underlying technology and infrastructure of Telegram remain robust. Operators may need to closely monitor the situation and be prepared to adapt their strategies to maintain user confidence.” Undoubtedly, the arrest has raised questions about the privacy and security of Telegram users’ data. If Telegram is compelled to cooperate more closely with law enforcement, it could lead to concerns among users about the confidentiality of their communications and transactions, particularly those involved in casino and gambling activities. Several Telegram-based casino solutions utilise cryptocurrencies for transactions. Any changes to Telegram’s policies or its ability to operate freely could influence the integration of cryptocurrency services on the platform, potentially affecting the ease of using these casino solutions. The broader crypto and gambling communities may react to the news by re-evaluating their reliance on Telegram as a platform. This could lead to a shift towards alternative platforms or decentralised applications that promise stronger privacy protections and are less likely to face regulatory pressures.