Telegram’s Financial Overview for 2023
As of the end of 2023, Telegram reported holding $400 million in digital assets. This figure was highlighted in the company’s financial statement for that year. The messaging platform, which had approximately four million premium users at the close of 2023, saw an increase to over five million premium users by mid-2024, according to the Financial Times.
Revenue and Losses
Despite the growth in its user base, Telegram encountered considerable financial difficulties. The company generated $342.5 million in revenue but reported an operating loss of $108 million for the year. Notably, around 40% of Telegram’s revenue stemmed from activities associated with digital assets.
Digital Asset Activities
A significant portion of this revenue originated from an “integrated wallet” and the sale of digital collectibles. The integrated wallet feature allows users to store, send, receive, and trade various cryptocurrencies directly within the app, likely contributing to Telegram’s substantial digital asset holdings. Furthermore, revenue was bolstered by the selling of digital collectibles, such as usernames and virtual phone numbers, alongside transaction facilitation between users, generating additional fees.
Global Reach and User Growth
Telegram’s global footprint was evident in 2023, with India leading in downloads at 83.85 million users, as reported by Statista. The United States followed, ranking third with 29.92 million downloads.
Pavel Durov’s Arrest and Its Impact
A significant incident occurred on August 24, when CEO Pavel Durov was arrested upon arriving at Le Bourget airport near Paris. This arrest came with serious accusations including terrorism, trafficking, conspiracy, fraud, and money laundering. Durov’s court appearance on August 28 triggered turbulence in the cryptocurrency market, particularly impacting Toncoin (TON), the native cryptocurrency of The Open Network, which was initially developed by Telegram. Following Durov’s arrest, the price of TON plummeted from approximately $6.70 to $5.30 within a week, a decline of over 21%. Additionally, its market capitalization fell by nearly 2%, settling at $13.42 billion.
Bail Conditions and Legal Proceedings
French authorities later granted Durov bail under stringent conditions, including a payment of 5 million euros and mandatory check-ins with police twice a week while remaining within French territory. Paris prosecutor Laure Beccuau confirmed that the judge found sufficient grounds for a formal investigation into Durov regarding all the charges he faced. These accusations include suspected complicity in administering an online platform that facilitates illicit transactions, distribution of child sexual abuse material, drug trafficking, fraud, and money laundering.
Pavel Durov’s Release
In a video shared by the Russian state news agency RIA and later circulated on X, Durov was seen dressed in black, sporting a baseball cap and sunglasses, leaving the prosecutor’s office and getting into a vehicle after his release. He is currently prohibited from leaving France and must report to the police twice a week.