Telegram's Pavel Durov Indicted Amid $400 Million Digital Asset Revenue Report and Upcoming Prague Event

The Block has announced an event called Emergence. It’s happening in Prague on December 5-6, 2024.

According to a report from the Financial Times, Telegram held $400 million in digital assets and made significant crypto revenues in 2023. This week, the company’s founder, Pavel Durov, faced indictment in a French court. The charges claim that Telegram’s tools and services helped facilitate illegal activities.

At the end of 2023, Telegram, a messaging app popular with crypto enthusiasts, reported having $400 million in digital assets. The report highlights Telegram's 2023 financials. A big chunk of the company’s revenue came from activities related to digital assets. Specifically, they noted two categories: “integrated wallet” and “sale of collectibles.” Together, these categories generated nearly $148 million, which is about 40% of Telegram’s total annual revenue.

The term “integrated wallet” refers to a software application that allows users to store, send, receive, and trade cryptocurrencies. This week, Pavel Durov, the founder and CEO of Telegram, was indicted in France. The charges allege that Telegram’s services were used for illegal purposes. Telegram has not yet responded to requests for comment.

Regarding the “sale of collectibles,” the report explains that “The Group sells various collectibles, like usernames and virtual phone numbers, to users. Revenue from these sales is recognized when the collectible is assigned to the user. The Group also facilitates sales between users and charges a fee for this service.”

The Financial Times also mentioned that Telegram sold a large number of Toncoin tokens just before the cryptocurrency’s price dropped. Toncoins are linked to the TON blockchain, which is closely associated with Telegram.

In reviewing Telegram’s financials, the Financial Times raised questions about Durov. They noted that the messaging app he owns is valued at least at $30 billion. Durov owns 100% of Telegram, which has secured $2.3 billion in external funding through convertible bonds held by sovereign wealth funds, hedge funds, and tech-focused investors.

Recently, Telegram reported nearing 1 billion users. However, it’s unclear how many bots are active on the platform. The app has gained popularity for crypto games like Notcoin and Hamster Kombat in recent months, utilizing the TON blockchain.