The arrest and investigation of Pavel Durov, CEO of the encrypted social network and messaging app Telegram, have raised concerns about the promotion of unlicensed cryptocurrency gambling websites.
Durov was detained by French authorities on the runway of a Paris airport this Saturday. The main reason for his arrest was concerns about inadequate moderation of illegal trade and harmful content on the Telegram platform, which reportedly has over 1 billion users worldwide.
The Russian-born businessman, a citizen of Russia, the UAE, Saint Kitts and Nevis, and France has generated international attention due to his arrest. The Kremlin has labeled the detention as “politically motivated,” despite some critical remarks from Durov about Putin’s government. X CEO Elon Musk has supported calls to “Free Pavel,” stating that Durov has become a victim of the ongoing EU war against free speech.
Authorities have expressed numerous concerns about Telegram’s use, including reports of criminal activity on the app such as drug trafficking, prostitution, child pornography, and extremist activities related to Islamists and far-right ideologies.
However, the accusations against Telegram may extend beyond immediate concerns about organized crime and extremism. The platform is also widely used in the gambling sector, both regulated and unregulated, particularly on cryptocurrency sites.
Using Telegram’s “channels,” unlicensed gambling sites can be promoted to an unlimited global audience. There are concerns that these channels advertise sites that circumvent customer verification requirements or lack self-exclusion programs.
A notable example is TG.Casino. This cryptocurrency casino operates entirely through Telegram, and despite the app’s encrypted nature, its popularity has significantly increased in recent months. Earlier this year, TG.Casino formed a commercial partnership with the Italian football club AC Milan, boosting brands visibility.
Another prominent crypto-casino and betting operator on Telegram is Lucky Block. Branding itself as a “licensed Bitcoin casino,” Lucky Block runs a website similar in design to other sports betting platforms, both cryptocurrency and fiat.
Recently, the company has also expanded its activities on Telegram. Through its channel, Lucky Block allows clients to place bets using Bitcoin, Ethereum, Tether, Litecoin, and Dogecoin, offering a welcome bonus of 200% up to €25,000 ($27,000).
These are just two examples among many online casinos and betting operators active on Telegram. The platform hosts many more such operators. Both TG.Casino and Lucky Block operate internationally under a license from the Curaçao Gaming Control Board license.
However, this license raises concerns, as Curaçao, a Dutch territory in the Caribbean, is often criticized for its lax regulatory oversight and for facilitating money laundering.
Despite this, TG.Casino and Lucky Block remain licensed operators on Telegram, although their licenses are often questioned. Numerous accusations are directed at unlicensed and unregulated casinos on the platform, many of which use cryptocurrency.
The proceeds from such illegal gambling sites often require laundering, which raises additional concerns for law enforcement, financial regulators, and governments. Similar concerns apply to allegations of drug trafficking and sex trafficking on the platform.
Although online gambling may not be the primary focus of French authorities regarding Telegram, the potential impact of a large-scale investigation, allegations, and even possible closures will undoubtedly affect the sector due to its extensive presence on the site.
Before Durov’s arrest, Telegram faced the threat of a ban in Turkey, where the central communications agency ICTA accused the platform of knowingly facilitating illegal activities such as money laundering, prostitution, and illegal gambling for Turkish users.
In the days following Durov’s arrest, India launched an investigation into the platform led by the . Indian authorities also focused on drug trafficking, prostitution, and illegal gambling.
While the French investigation into Telegram following Durov’s arrest has been the most high-profile, it is likely to be lengthy and contentious. Telegram has firmly denied all accusations against its CEO, who, with a reported net worth of $15.5 billion, can afford a strong legal defense.
Since its inception in 2013, Telegram has claimed to be “politically neutral,” emphasizing that end-to-end encryption is crucial for protecting users’ anonymity from governments and enabling free communication and expression.
In response to its CEO’s arrest, Telegram’s statement read: “Telegram abides by EU laws, including the Digital Services Act – its moderation is within industry standards and constantly improving… Telegram’s CEO Pavel Durov has nothing to hide and travels frequently in Europe.
“It is absurd to claim that a platform or its owner are responsible for abuse of that platform. We’re awaiting a prompt resolution of this situation.”
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