Telegram Faces Finacial Woes as CEO Remains Under Investigation

As Pavel Durov’s reported arrest and release continues to spark discussions across several climes of interested cycles, investigations have continued into his alleged role in illegal activities carried out through his platform, Telegram. The tech Tycoon faces six charges which are related to illicit activities on the app.

Durov’s release on €5 million bail was on conditioned terms which bars him from leaving France and tasks him with regular check ins at police station twice a week.

While this ongoing investigation takes place, the financial struggles of his platform, Telegram, has been revealed by the Financial Times FT.

An operating loss of $108 million was posted for the year 2023 which increased to $173 million after taxes. while revenue amounted to $342 million as reported by the Financial Times FT.

Telegram’s 2023 loss was however partially offset by the revaluation of digital assets on its balance sheet. With FT reporting that the company have sold $244 million worth of Toncoin TON in 2024.

Toncoin coin is a blockchain backed projects supported on the telegram app.

Potential Implications of Telegram Woes on Market Sentiments

The publication’s sources offered an insight which indicates the combination of the financial results, and the charges brought against Durov could cast doubt on the plans for an IPO with a valuation of $30 billion.

A sum of about $2.4 billion has been raised by the company in debt financing which must be repaid by 2026. This includes:

• $1 billion bond offering with the Abu Dhabi government funds in 2021.
• $64 million worth company bonds bought by Durov in 2023
• $330 million worth of Telegram securities sold in 2024

Telegram’s debt securities have however fallen in price since Durov’s arrest. Falling to as low as $0.87 compared to its traded value of $0.96 before his arrest in Paris.

The TON price was also affected, retracing towards the $5.01 support margin before eventually recovering.

While the uncertainty has affected the short-term performances of Telegram securities, its long-term pathway remains unclear. The strategy adopted by the platform’s CEO will be critical towards navigating the current threats and challenges.

Current Adopted Strategy for the Platform

In an interview with Turker Carlson earlier this year, Durov revealed his core staffs to be a handful of experts who were competitively selected to fill required roles. With Durov positioned as the leader of the core group.

As the product lead as well as decision maker, all functionalities are launched with the deep involvement of the CEO.

This management approach has raised questions on the survival of the platform in the absence of the Founder. With the current debacle facing the tech tycoon, it remains to be seen how the strategy plays out through this period.

The platform’s management model will however continue to cast doubts over its long-term viability and durability in the absence of Durov irrespective of how the current hurdle faced by the company is navigated.