Telegram CEO Pavel Durov Faces 10-Year Sentence and €500K Fine In France's First Cybercrime Case Under New Law

French prosecutors have placed Pavel Durov, CEO of Telegram, under formal investigation using a stringent new cybercrime law.

What Happened: The LOPMI law, enacted in January 2023, criminalizes tech executives whose platforms facilitate illegal activities. This marks the first significant use of the law, which has yet to secure a conviction. Durov faces charges including “complicity in the administration of an online platform to allow an illicit transaction, in an organized gang,” carrying a potential 10-year sentence and a €500,000 fine, Reuters reported on Tuesday.

Being under formal investigation does not imply guilt but indicates sufficient evidence for a probe. Durov, who is out on bail, denies the allegations, asserting that Telegram complies with EU laws. Telegram has called the accusations “absurd.”

Paris Prosecutor Laure Beccuau praised the 2023 law in a recent radio interview, highlighting its effectiveness against organized crime operating online. The law is unique, with no known international equivalent, according to experts.

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The case against Durov is significant as it tests the boundaries of the new LOPMI law, which aims to hold tech executives accountable for illegal activities conducted on their platforms. The law’s effectiveness and international implications are being closely watched by legal experts and tech companies worldwide.

Why It Matters: The investigation into Durov follows a series of legal challenges for the Telegram CEO. On Aug. 26, Paris Public Prosecutor Laure Beccuau released a detailed statement outlining 12 serious charges against Durov, including complicity in facilitating illegal online transactions, unauthorized provision of cryptology services, and involvement in child pornography distribution, drug-related offenses, organized fraud, and money laundering.

In response to these mounting legal pressures, Telegram has updated its policy on private chat moderation. On September 6, the company retracted a statement from its FAQ page that previously assured users of immunity from moderation requests in private chats. This move came after Durov’s first public statement post-arrest, where he committed to improving content moderation on the platform.

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Image via Flickr/ Hubert Burda Media

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari