Legal Troubles Spark Financial Crisis at Telegram as Bond Values Plummet

Pavel Durov, the founder and CEO of Telegram, is under formal investigation in France as part of an inquiry into organized crime activities on the messaging platform. Although he has not been detained, he is under judicial supervision and required to post a €5 million bail. The announcement of these criminal charges has led to a substantial drop in the value of Telegram’s bonds. The price of these bonds has fallen by nearly 10 percentage points, now trading at around 87 cents on the dollar, down from around 96 cents prior to Durov’s arrest. This drop has resulted in a yield of over 16 percent for the bonds.