French authorities are cracking down on Telegram founder Pavel Durov. A French official said the lack of content regulation was at the heart of the case. The case evokes arguments heard in the Tornado Cash cases.
When French authorities detained Telegram founder Pavel Durov this week, it brought bad news to the crypto community.
Over the years, crypto entrepreneurs, devs, investors and users of all kinds have flocked to the platform and formed groups to communicate, collaborate and help develop their ventures.
Durov's arrest signals that European authorities are stepping up their pressure to hold software developers accountable for activity on their platforms.
'Absurd claim'
Prosecutor Laure Beque Said Durov was detained as part of an investigation that began on July 8. That investigation involved an unnamed man charged with a dozen crimes, including providing certain “cryptology services” without government permission.
The legal dustup isn't enough for many in or associated with crypto, including Telegram.
“It is absurd to say that the platform or its owner is responsible for the misuse of that platform,” the social media company said in a statement on Sunday.
That's the argument that onetime Tornado Cash dev Alexei Pertsev made in a $2.2 billion money laundering trial earlier this year.
While Pertsev argued that he was not criminally responsible for the illegal transactions on the automated crypto mixer, the Dutch court disagreed and sentenced him to a little more than five years in prison.
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Now others are seeing a similar play again.
“It's not a good example for the founder of Telegram to be arrested because of what others have done with his invention,” said José Fabrega, head of marketing at Metis, an Ethereum-based blockchain. wrote that In X. “Pavel Durov Arrest Again Tornado Cash Case.”
'The crux of this case is the lack of control and cooperation from the venue.'
– Jean-Michel Bernigoud, Ofmin
The problem is not just Durov's arrest. That's the gravity of the alleged wrongdoing French authorities are investigating in connection with Telegram.
On Monday, French authorities said the unnamed subject in their investigation was providing “cryptology services to ensure privacy” without a government-required declaration.
blind eye
Media reports Police suspect that Telegram is turning a blind eye to spreading child pornography and using the platform in crimes ranging from drug peddling to money laundering.
Jean-Michel Bernigaud, head of the French law enforcement agency Offmin at LinkedIn, said, “The core of this case is the lack of regulation and cooperation from the platform. Post On Monday. “Especially in the fight against pedocriminality.”
Telegram has denied the allegations.
“Telegram adheres to EU laws, including the Digital Services Act – its regulation complies with industry standards and is constantly improving,” the company said.
Now Durov's situation has committed developers to intensifying the debate about responsibility to police their own platforms.
Preston Byrne, a crypto attorney, crystallized What's up on his personal blog on Sunday.
“There is not much evidence to show that Durov and Telegram specifically intended to commit or bring about these crimes,” he wrote, “why similar accusations cannot be made against any other provider of social media services in France. Moderation practices are less than perfect, especially end-to-end. Social media services that offer encryption.
Flash point
The case is also a flashpoint for free speech. Crypto analyst Noel Acheson called the action against Durov the latest “insult” to civil liberties.
“Apparently, unregulated messaging platforms are run like regulated banks, requiring them to comply with an unreasonable amount of regulations to (unsuccessfully) prevent money laundering,” she wrote in her newsletter, Crypto Is Macro.
Ari Redbord, global head of policy at TRM, agreed.
“It's unusual for the developer of an application to be held criminally liable solely for using the platform,” he said. wrote that On LinkedIn.
“And this case will have far-reaching international implications because it highlights the ongoing tension between the protection of free speech and the need to combat illegal activity online.”
There are many more.
Pertsev's colleagues, Tornado Cash co-founder Roman Storm, face similar charges in the US. His trial is set to begin later this year in Seattle.
Alex Gilbert News'Diffie correspondent from New York. You can reach him at [email protected].
Related Topics Tornado Cashlexy PertSave