Telegram's story is a modern tale of defiance, innovation, and ultimately, hubris. Born from the visionary mind of Pavel Durov, Telegram emerged as a bastion of free expression and privacy. In an era marked by increasing governmental surveillance, the Durov brothers crafted a platform that stood as a fortress against censorship, offering encrypted messaging to millions worldwide.

This commitment to privacy quickly made Telegram a magnet for users who were disillusioned with mainstream platforms and wary of state intrusion.

Unfortunately, in almost a Shakespearean tragedy-like manner, its staunch stance on privacy, is what ultimately caused its downfall. The platform's refusal to comply with data requests and its association with controversial activities turned it into a focal point of global debates on freedom, security, and the limits of digital privacy.

The arrest of Pavel Durov in 2024 put a huge microscope on Telegram’s activities. While Durov might no longer be in jail, the recent events surrounding his arrest have thrust the platform into legal and ethical controversies, challenging its foundational principles and future prospects. 

Early Beginnings with VKontakte

Pavel Durov and his brother Nikolai Durov founded VKontakte (VK) in 2006. VK quickly became Russia's most popular social networking site, akin to Facebook in the West, offering a platform for social interaction, content sharing, and community building.

Durov's tenure at VK was marked by his staunch commitment to freedom of expression and resistance to governmental interference. This philosophy often put him at odds with Russian authorities, especially during politically sensitive times such as the 2013-2014 Maidan Revolution in Ukraine. Durov's refusal to hand over user data related to Ukrainian activists led to mounting pressure from the Kremlin, eventually culminating in his ousting from VK in 2014 and subsequent exile from Russia.

This set the stage for the creation of Telegram. Unlike VK, Telegram was designed to be a privacy-centric, encrypted messaging platform, allowing users to communicate without fear of surveillance. It featured robust encryption methods and the promise of not being beholden to any single government, which made it particularly attractive to users who valued security and freedom of speech.

Telegram Grows into a Global Platform

Telegram grew steadily in its early years, positioning itself as an alternative to more mainstream apps like WhatsApp and Facebook Messenger. It distinguished itself by offering unique features such as large group chats, broadcast channels, and the ability to send large files. Telegram’s open-source nature also allowed developers to create bots and games on the platform, further enhancing its appeal. 

Things really picked up for Telegram in the mid-2010s. There were increased concerns about online privacy and global revelations about government surveillance programs, most notably by Edward Snowden. 

Telegram's promise of privacy, combined with its user-friendly interface, attracted millions of users globally. 

Telegram has now reached almost a billion active monthly users.

Embracing the Cryptocurrency Community

As cryptocurrency began to gain traction, Telegram found itself at the center of the movement. It became one of the primary platforms for crypto communities, particularly for initial coin offerings (ICOs), token trading, and project discussion forums. The platform’s ease of use, coupled with its privacy features, made it a favorite among crypto enthusiasts and traders.

Recognizing this growing user base, Telegram ventured into blockchain technology with the development of the Telegram Open Network (TON). In 2018, Telegram raised an astounding $1.7 billion through an ICO to develop the TON blockchain and its associated cryptocurrency, Gram. The aim was to create a decentralized platform that would enable secure, fast transactions while allowing for decentralized apps (dApps) and services to be built on the network.

Despite the enormous potential of the TON blockchain, Telegram's ambitious foray into the world of cryptocurrency was met with regulatory challenges. 

In 2019, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Telegram, claiming that the sale of Gram tokens was an unregistered securities offering. In 2020, Telegram agreed to return $1.2 billion to investors and abandon the TON project, effectively scaling back their crypto ambitions. 

While Telegram’s direct involvement in the TON blockchain project stopped, it remained a primary hub for crypto-related communities. Projects and developers continued to use the platform to communicate, discuss new tokens, and organize events.

Telegram's 2023 financial report showed that over 40% of its $342.5 million revenue came from crypto-related activities despite a $108 million operating deficit.

Telegram in 2024

Prior to Durov’s arrest, Telegram actually had quite a decent 2024. Firstly, TON was one of the best-performing coins of the year.

January 1, 2024, to June 15, 2024, TON jumped from $2.27 to $8.17. That’s almost a 4X rise in valuation.

Telegram Mini Apps have also experienced a rapid rise in popularity since their debut in 2023, driven by the integration of the TON blockchain. These web applications run directly within the Telegram app and allow developers to create sophisticated, decentralized apps using familiar web programming languages.

The seamless combination of Telegram’s large audience with the TON blockchain's scalability and low transaction fees has enabled quick adoption and garnered millions of users.

Start of the End: Governments Demand User Data

As Telegram's popularity grew, so did its notoriety. Governments worldwide began to view Telegram as a potential threat due to its lack of cooperation in providing user data. Several countries, including Russia, Iran, and China, attempted to block or censor Telegram, citing concerns over its use by political dissidents.

Governments argue that access to encrypted communications is necessary to combat terrorism, money laundering, and crime, while privacy advocates maintain that government backdoors erode civil liberties and empower authoritarian regimes.

One of the most major confrontations occurred in Russia, where authorities demanded access to encrypted user data to monitor illegal activities and potential terrorism. Durov refused to comply, resulting in a ban on Telegram in Russia in 2018. 

The pressure from governments was not limited to Russia: 

• German authorities fined Telegram €5 million in 2022 for failing to comply with German law regarding illegal content. 

• In France, the company faced legal challenges due to its association with extremist activities and the spread of illegal content. 

Of course, as they say, where there’s smoke, there’s fire.

The platform’s limited moderation policies allowed extremist groups and illegal activities to flourish. Telegram was used for coordinating terrorist attacks, drug trafficking, and the sharing of child exploitation content, which caught the attention of law enforcement agencies worldwide. 

The Arrest of Pavel Durov

The culmination of Telegram's regulatory and legal challenges occurred in August 2024 when Pavel Durov was arrested upon arriving in Paris from Azerbaijan. French authorities detained Durov on charges including refusal to share data related to financial crimes, drug trafficking, and enabling the spread of child exploitation material on Telegram.

Durov's arrest ignited a diplomatic spat between France, the UAE, and Russia. After four days of questioning, he was released on a €5 million bail, but he was prohibited from leaving France and required to report to the police regularly.

The arrest sparked debates over free speech, privacy, and state surveillance, with figures like Elon Musk and Edward Snowden criticizing the move as an attack on free expression.

Regardless, Durov’s wrecked TON’s price.

TON crashed from $6.75 to $5.11 within three days.

Telegram’s Legacy

Telegram's legacy is marked by its dual role as a champion of privacy and a hub for controversy. While it provided a secure platform for users seeking freedom from censorship, it also faced critical legal and ethical challenges threatening its existence and reputation. 

The intriguing part is that Durov’s case sets a precedent that could impact other tech companies and social media platforms. It could prompt reevaluations of moderation policies, data-sharing practices, and compliance with international laws.