Pavel Durov Breaks Silence After Arrest in France

Telegram founder Pavel Durov has publicly addressed his arrest in France last August, criticising the authorities for targeting him personally rather than the company. In a statement, Durov reaffirmed Telegram's commitment to free speech, even if it means exiting markets that oppose this principle.

Durov expressed surprise at his detention, noting that he is a French citizen and regularly visits the French Consulate in Dubai. He questioned the necessity of his arrest, given that Telegram has a legal representative in France to handle regulatory issues. Additionally, Durov underscored that Telegram's mission is to protect basic human rights, particularly in regions where these rights are under threat. He also criticised the decision to charge him personally, suggesting that the action was unjust.

Screenshot of Durov’s message (Source:Telegram)

In response to his arrest, French President Emmanuel Macron denied any political motivation, but this did not quell international criticism. The arrest has sparked a backlash, with calls for Durov's release coming from the TON Society and tech industry leaders. The situation escalated when Rumble CEO Chris Pavlovski announced his departure from Europe, warning that France was becoming unsafe for tech founders who champion free speech. Pavlovski accused French authorities of crossing a line by targeting those who refuse to censor speech.

Read more: Vitalik Buterin Voices Concern Over Western Bias Following Telegram CEO Pavel Durov’s Arrest

CZ Banned from Managing Binance

In a related development, Binance founder Changpeng "CZ" Zhao faces a lifetime ban from managing the crypto exchange as part of a plea deal with US authorities. Despite earlier reports suggesting a three-year ban, Binance CEO Richard Teng confirmed the permanent restriction. This comes after Zhao pleaded guilty to violating the Bank Secrecy Act, resulting in a $4.3 billion settlement with US regulators. Zhao, who is expected to be released from prison on 29 September, has stepped down from his role as CEO but remains available to Binance in an advisory capacity.

The plea agreement, filed in November 2023, does not explicitly require Zhao’s ban, but it was considered a measure by prosecutors. As part of the settlement, Zhao was also required to pay $50 million personally to US regulators. Meanwhile, Binance's legal battle with the US Securities and Exchange Commission (SEC) continues.

Ryan Salame Linked to FTX Bribery Scandal

US prosecutors have linked former FTX Digital Markets co-CEO Ryan Salame to a bribery scandal involving accounts in the names of Thai prostitutes to unfreeze funds tied to FTX and Alameda Research. Prosecutors allege that Salame played a role in facilitating the unfreezing of funds as part of a broader scheme involving former FTX CEO Sam Bankman-Fried. This scheme allegedly included a $150 million bribe to Chinese officials to unlock $1 billion in frozen funds on Chinese exchanges.

Salame, who pleaded guilty to campaign finance violations, faces a 90-month prison sentence, with his case unrelated to his partner Michelle Bond's separate charges. Bankman-Fried was sentenced to 25 years in prison and has filed an appeal.

Read more: Telegram CEO Pavel Durov Addresses Arrest, Pledges Stronger Action Against Criminal Activity on Telegram While TON Soars

Nearly 90% of Crypto Firms Fail FCA Approval in the UK

In the United Kingdom, nearly 90% of crypto firms have failed to gain approval from the Financial Conduct Authority (FCA) in the past year. The FCA's 2024 annual report revealed that most firms struggled due to inadequate fraud protection and money laundering controls. Only four out of 35 applications were approved, with most being withdrawn or rejected.

Source:FCA

The FCA is also working on a new financial promotion framework to ensure that crypto-related advertisements in the UK are clear and not misleading. However, slow processing times and a lack of political support have led some experts to warn that crypto firms may increasingly look to establish operations outside the UK. The average processing time for a crypto firm's registration with the FCA has been 459 days over the past three years, leading to concerns about London’s competitiveness in the crypto sector.