Telegram has been hit by a major financial setback after $500 million in funding was frozen as part of Western sanctions targeting Russia. Although the platform now operates globally, its historic ties to Russian capital continue to impact its business.
Telegram Bond Frozen Under Sanctions
Over the years, Telegram issued several bonds to refinance older debt and support expansion. The company has been buying back much of its outstanding debt, including those due in 2026.
However, a portion of bonds worth $500 million ended up in Russia’s National Settlement Depository — an institution now sanctioned by the EU, the US and the UK.
According to the Financial Times, these sanctions froze the assets entirely, cutting Telegram off from significant capital and complicating its buyback program.
Telegram has warned bondholders that it will repay the frozen debt only on the maturity date, while payment agents and custodians must determine whether funds can legally be released to Russian holders.
Telegram Tries to Distance Itself From Russia
Founder Pavel Durov has for years been working to reposition Telegram as a truly international company. Since leaving Russia in 2014 after refusing to hand over user data to authorities, Durov has repeatedly rejected claims that the company is influenced by the Kremlin — calling such allegations “conspiracy theories.”
Telegram has also been making a strong push into the US market, particularly through its TON blockchain. Yet gaining recognition in the crypto ecosystem has required constant effort to prove independence and transparency.
Meanwhile, Durov is facing legal proceedings in France, once again raising questions about Telegram’s handling of user data. Durov maintains that the company is committed to free speech and resistance to government pressure.
Revenue Booms Despite Legal Pressure
Telegram is experiencing rapid monetization growth. After introducing ads and premium subscriptions, the company generated $870 million in revenue in the first half of the year and holds nearly $910 million in cash and equivalents.
If the trend continues, Telegram could surpass $2 billion in revenue in 2025. A significant portion — potentially $300 million — may come from increased activity on the TON network, which Telegram has integrated directly into the app while removing wallet access to Ethereum and other exchanges.
These strong financials have revived expectations of an IPO. Bondholders are watching closely, as their bonds give them the right to acquire Telegram shares at up to a 20% discount. However, the French investigation could delay the public offering.
Concerns Over Illegal Content Persist
Telegram continues to face criticism for hosting groups that share illegal content and run unregulated marketplaces — although Durov denies any intentional wrongdoing.
Despite earlier value declines, the TON token has recovered over 19% in the past month, rising to $1.92.
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