Telegram CEO’s Arrest Reveals Platform’s Channels Ties to Crypto Gambling

The investigation of Telegram chief executive officer Pavel Valeryevich Durov who was recently taken into French police custody triggered serious concerns regarding the promotion of illegal crypto-based gambling sites on the platform

“Politically Motivated Arrest”
The Russian-born CEO was arrested at an airport north of Paris under a warrant for offenses in relation to the moderation of harmful content and illicit commerce shown on his platform which counts over one billion global users.

The billionaire businessman, who is also a citizen of France, the UAE, and Saint Kitts and Nevis, was barred from leaving the country. 

His arrest made waves in international news outlets, as his capture was regarded as a “politically motivated arrest” by the Kremlin. 

This was in spite of the past criticisms that the CEO had made towards the Russian government. 

X chief executive officer Elon Musk called Durov a prisoner of the European Union’s continuous war on the basic human right to free speech, asking for his release. 

Durov also received the support of right-leaning American political figures Tucker Carlson and Marjorie Taylor-Greene.

Illicit Gambling Suspicion Via Telegram Channels 
Besides the alleged use of Telegram for criminal activity ranging from prostitution, child pornography, and drug trafficking, to extremist activity including far-right ideologies and Islamism, authorities also suspect the app has allowed regulated and unregulated gambling operators to use its “channels.” 

The latter allows unlicensed gambling sites like casinos with no self-exclusion and venues that bypass standard player verification to be promoted to unrestricted international users. 

Special emphasis has been put on cryptocurrency sites with TG.Casino and Lucky Block as primary examples.

The latter, which describes itself as a “licensed bitcoin casino,” is a crypto gambling platform and sportsbook that looks like other known fiat and crypto sports betting sites. 

Their Telegram channel enables people to place bets using popular cryptocurrencies including Bitcoin, Ethereum, Tether, Litecoin, and Dogecoin while welcoming newcomers with a massive 200% bonus up to €25,000.

TG.Casino is a crypto gambling site that exclusively operates on the encrypted app, gaining a lot of visibility recently and inking a commercial deal with Italian football club AC Milan earlier in the year. 

Both venues operate internationally using a license from the Curaçao Gaming Control Board. The Dutch territory in the Caribbean frequently faces accusations of facilitating money laundering and relaxed gaming license conditions. 

Nonetheless, the two casinos in question represent licensed operators on the app but there are plenty of accusations concerning unlicensed and unregulated casinos that are currently active on the app. 

Many are aimed at cryptocurrency gamblers and the revenue they generate must be laundered, adding more fuel to the fire and raising more concerns from state governments, governments, and law enforcement bodies. 

Illegal Gambling Accusations Made by Turkey and India 
Other countries also initiated their investigations into Telegram’s criminal activities, with similar findings. 

Prior to the arrest, Turkey’s national telecommunications regulatory and inspection authority, the Information and Communication Technologies Authority (ICTA), accused the app of knowingly promoting illicit gambling, along with other illegal activities like money laundering and prostitution to Turkish audiences. 

ICTA’s accusations led to speculation of a potential ban in the country. 

While illegal online gaming accusations might not be the first thing on the French authorities’ minds regarding Telegram, the impact of the anticipated extensive investigation, charges and potential shutdowns will have a major impact on the sector. 

A few days after Durov’s controversial arrest, India’s Cybercrime unit together with the Ministry of Home Affairs and the Ministry of Electronics and Information Technology proceeded to launch a similar investigation into the app launched in March 2013. 

The Indian authorities cited similar illegal gambling, drug trafficking, and prostitution accusations. 

However, given the arrest, the investigation initiated by the French authorities is the most prominent and also one expected to be lengthy and difficult to carry with Telegram denying all wrongdoing accusations. 

Telegram Insists It Is “Politically Neutral”
Since founding the app, Durov has repeatedly reiterated its “politically neutral” stance. 

Responding to its CEO’s arrest, Telegram issued a statement that explained the platform was complying with all European Union laws, including the Digital Services Act. 

The same statement added the app’s “moderation is within industry standards and constantly improving,” adding Durov “has nothing to hide and travels frequently in Europe” and calling it “absurd to claim that a platform or its owner are responsible for abuse of that platform.”

In April, it was revealed that eight out of every ten popular Swedish influencers on the streaming platform Twitch actively endorsed unlicensed casinos to their viewers.