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The case against Pavel Durov and why it's important for crypto

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Telegram founder Pavel Durov has been allowed to leave France temporarily, but the preliminary charges against him raise significant questions for the crypto community.

On March 13, a French court gave the founder and CEO of the encrypted messaging app Telegram permission to leave for Dubai, where he had previously resided. Durov had been in France since August 2024, when he was arrested at the Le Bourget airport in Paris. 

Durov was part of an investigation containing allegations of negligence and complicity in crimes like narcotics trafficking, money laundering, child sexual exploitation and terrorism. He could face up to 20 years in prison if convicted.

More broadly, Durov’s case raises questions about developer responsibility for the cryptographic platforms and tools they create — a well-known issue in the cryptocurrency industry.

Is Durov responsible for what happens on Telegram?

The preliminary charges against Durov claimed he was responsible, at least in part, for the illicit activities allegedly enabled by the platform’s encryption and support for cryptocurrencies. 

The argument will sound familiar to crypto industry observers, who have been following the case of Alexey Pertsev, the developer of cryptocurrency mixer service Tornado Cash. As with Durov, prosecutors allege that Pertsev is responsible for the illicit activities that took place on the platform, namely money laundering. 

Pertsev was arrested in the Netherlands in 2022 and is currently out on bail while he waits for his trial to begin.

Related: Tornado Cash dev Alexey Pertsev’s bail a ‘crucial step’ in getting fair trial, defense says

In both cases, members of the crypto community have recognized the possible implications to free speech and privacy, and come to support the executives. 

Jose Fabrega, head of marketing at Ethereum-based blockchain Metis, called Durov’s arrest the “Tornado Cash case all over again.”

Source: Jose Fabrega

Natalia Latka, director of public policy and regulatory affairs at blockchain analysis firm Merkle Science, has previously told Cointelegraph that “Historically, software developers were seen as neutral creators of tools and platforms, responsible for their technical functionality but not for how those tools were used.”

However, she said this has been changing with the proliferation of decentralized tools that “challenge traditional regulatory frameworks.”

This puts decentralized platforms in a “tight spot,” crypto platform Onesafe wrote in a blog post on March 17. “This means knowing the legal frameworks governing their operations and engaging with regulatory bodies.”

It also called the Durov case a “pivotal moment” for the cryptocurrency industry and called on crypto firms to advocate for more “balanced regulations” and support advocacy groups. 

Durov himself wrote on March 17 that Telegram has “not only met but exceeded its legal obligations.” 

Implications for free speech

Observers and critics alike have raised concerns about Durov’s arrest — discussing what it means for free speech and whether the arrest could have been politically motivated.  

Chris Pavlovski, the CEO of “alt-tech” video-sharing platform Rumble, said that it was the final straw for him and his company, which had previously clashed with French officials over censorship issues. 

Source: Chris Pavlolvski 

Gregory Alburov, an investigator for the Anti-Corruption Foundation of late Russian opposition politician Alexey Navalny, said the case “in addition to being unjust as hell (Durov obviously isn’t engaged in terrorism or weapons trafficking), is also a huge blow to freedom of speech.”

Durov’s previous clashes with regulators, particularly in 2018, when he refused to comply with an order from Russian telecoms regulator Roskomnadzor, have led many to believe that the charges were politically motivated. 

While French President Mannuel Macron publicly stated that the case is not an attack on Durov, Dmitry Zair-Bek — a human rights lawyer and head of the human rights organization Department One — disagrees. 

Related: Free speech and online privacy: Pavel Durov’s rise to the top

“Durov is essentially being targeted for his efforts to protect users’ privacy and, of course, for his refusal to cooperate with intelligence agencies,” he said

Regardless of the motivations, the outcome of the case will have clear implications for future platforms. A conviction could intimidate platforms and executives into more intense moderation to the point of censorship, while a victory could embolden others to abandon obligations to regulators and public safety. 

Durov’s leave in Dubai reportedly extends to April 7. The French prosecutor’s office has not made any public statements regarding the status of the case.

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Bhutan government moves $63M BTC to three wallets

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The Bhutan government moved $63 million worth of Bitcoin (BTC) on March 24 to three wallets, according to Onchain Lens, which analyzed data from Arkham Intelligence.

One of the wallets now holds 600 BTC worth approximately $53 million at time of writing.

Bhutan has leveraged its abundant hydroelectric power to mine Bitcoin since 2019. In September 2024, Arkham indicated that it had found the first wallet tied to the Bhutan government’s investment arm, Druk Holdings. After the March 24 transfers, the wallet holds $889.9 million invested in Bitcoin.

Source: Onchain Lens

The statistics indicate that Bhutan’s cryptocurrency holdings represent 30.7% of its gross domestic product (GDP), which, according to the latest data from the World Bank, reached $2.9 billion in 2023.

Although Bitcoin is the primary holding of the Bhutan government, the nation does not seem to be pursuing a solely Bitcoin-based strategic reserve. Other stacks in the Druk Holdings wallet are $334,580 of Ether (ETH) and smaller amounts of LinqAI (LNQ), Phil (PHIL), and Apu Apustaja (APU), among other coins.

Crypto holdings of the Bhutan government as of March 24, 2025. Source: Arkham Intelligence

In October 2024, Bhutan moved $66 million of its BTC holdings to Binance. Over the past two months, the government has been moving small portions of Bitcoin and Ether out of its main wallet to other addresses.

Governments adopt cryptocurrency reserves

Bhutan’s national government isn’t the only government body adopting cryptocurrency in the country — the practice has filtered down to the city level as well. In January 2025, Bhutan’s Gelephu Special Administrative Region announced plans to recognize a variety of digital assets as part of its strategic reserve.

Related: Bitcoin’s role as a reserve asset gains traction in US as states adopt

Governments that have adopted a Bitcoin strategic reserve have seen their holdings multiply during this 2024-present bull run. El Salvador saw the value of its Bitcoin holdings surge to $100 million in November 2024, and the United States government now holds over $17 billion in Bitcoin.

While national governments garner the most attention, some state governments are thinking of creating Bitcoin reserves as well. In the US, Texas has passed its Bitcoin reserve bill, although it still must be signed into law by the state’s governor.

Bitcoin reserve bills in some states like Arizona are inching closer to becoming law, though a few states have already rejected their Bitcoin bills for a variety of reasons.

Magazine: Chinese Tether laundromat, Bhutan enjoys recent Bitcoin boost: Asia Express

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Will Bitcoin price hit $130K in 90 days? Yes, says one analyst

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Bitcoin (BTC) delivered its best weekly performance in over two months, climbing 4.24% to an intra-day high at $88,804. BTC also reclaimed a bullish stance on the charts, closing above the daily chart’s 200-day exponential moving average (EMA).

Bitcoin 1-day chart. Source: Cointelegraph/TradingView

With a weekly close above $84,600, the likelihood of BTC testing $90,000 increases. However, BTC price must overcome the descending resistance level to make a sustainable move at the range highs.

Bitcoin correction is a “healthy pause”

Bitcoin researcher Axel Adler Jr. explained that based on onchain metrics, the current price cycle reflects a healthy consolidation rather than the beginning of a bear market. Adler Jr. noted that BTC has not yet entered “overheated” territory in this cycle, as indicated by BTC’s Investor Price Model. 

This metric flashed a sell signal twice during 2021, and the model incorporates the realized cap, thermo cap, investor price, and Bitcoin supply. 

Using Bitcoin’s cumulative value days destroyed (CVDD), Adler argued that the market remains in a “growth stage.”

Bitcoin cumulative value days. Source: adlercryptoinsights / Substack

The CVDD metric monitors selling activity among long-term holders. The current bull cycle (2024-2025) triggered a sell signal just once, back in March 2024. In a Substack article, Adler said,

“Considering the current market dynamics, we might see seasoned investors taking profits once Bitcoin breaches key peak levels ($123K), potentially exerting downward pressure on the price.”

From the above analysis, Adler Jr. predicted that Bitcoin could climb to $130,000 within 90 days.

Related: Bitcoin must reclaim this key 2025 level to avoid new lows — Research

Bitcoin open interest jumps $1.5 billion in 24 hours 

According to Velo data, Bitcoin’s open interest (OI), representing the total value of outstanding futures contracts, jumped by over $1.5 billion in the last 24 hours.

Meanwhile, the funding rate, which reflects the cost of holding leveraged positions, stayed near neutral. This suggests that neither bullish (long) nor bearish (short) traders were dominantly in control.  

Bitcoin price and aggregated open interest. Source: Velo.chart

Bitcoin experienced a surge in upward momentum late on Sunday, March 23rd. Weekend price rallies like this often occur with lower trading volume, as larger market participants tend to step back until the start of the week. In such a scenario, leveraged trades amplifying the action could heavily influence the price movement.

In an X post, anonymous crypto analyst IT Tech PL also pointed out the OI level rise after BTC exceeded $87,500. However, the analyst added, 

“But here’s the catch: High OI + Rapid Price Increase = Risk of Liquidation Cascades!”

Bitcoin 4-hour chart. Source: Cointelegraph/TradingView

From a technical perspective, Bitcoin registered a new high at $88,750 over the previous week’s top. However, as the chart exhibited, the price tested the upper Bollinger Band alongside the descending resistance. Additionally, BTC is also oscillating within an ascending channel.

Based on the above confluence, BTC could witness a short-term correction to test the demand zone around $86,000-$87,000 before breaking through the $90,000 threshold.

Related: Michael Saylor’s Strategy surpasses 500,000 Bitcoin with latest purchase

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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DeFi lender Nostra pauses borrowing after price feed error

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Nostra, a lending protocol on Starknet, has paused borrowing for two liquid staking tokens after identifying a “critical issue” with its price feeds, the decentralized finance (DeFi) protocol said. 

On March 24, errors in Nostra’s price feed inflated the reported prices of xSTRK and sSTRK — two liquid staking derivatives of Starknet’s native STRK token — to approximately three times the tokens’ actual value, Nostra said in a post on the X platform.

According to Nostra, “[s]uch an inflated price feed could have caused unnecessary liquidations of otherwise safe positions, resulting in users with healthy positions getting liquidated.” 

In response, the DeFi protocol has disabled any further borrowing against xSTRK and sSTRK collateral deposits, Nostra said. 

Nostra has also recommended that users with existing xSTRK and sSTRK deposits withdraw the collateral immediately. 

“Since we don’t have a secondary (fallback) oracle to support these assets, as none are available, we are unable to fully prevent similar events from occurring in the future,” Nostra added.

“Our priority has always been and continues to be to keep existing user funds safe and with no fallback oracle, the risks outweigh the benefits,” it said. 

Nostra’s collateral token options. Source: Nostra

Related: Starknet to settle on Bitcoin and Ethereum to unify the chains

Starknet DeFi protocol

Starknet is a layer-2 scaling chain of Ethereum secured using zero-knowledge (ZK) proofs. It launched its mainnet in late 2021, according to Messari.

It has a total value locked (TVL) of approximately $575 million, according to data from L2Beat. 

Lending protocol Nostra is among the larger DeFi projects operating on the chain. It has a TVL of approximately $55 million, according to its website. 

On Nostra, users post collateral in one token to borrow in another token. The DeFi protocol’s most popular collateral tokens are Ether, STRK, and stablecoins USDC (USDC) and Tether (USDT). 

Starknet designed STRK to be staked in exchange for a portion of the network’s fee revenues, according to its documentation.

xSTRK and sSTRK are liquid staking tokens issued by independent DeFi protocols Endur and Nimbura, respectively. 

Magazine: What are native rollups? Full guide to Ethereum’s latest innovation

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