Telegram Admits to Disclosing User Data Since 2018, Raising Crypto Privacy Concerns

Telegram CEO Pavel Durov has revealed that the platform has been sharing user data, including IP addresses, phone numbers, and home addresses, with law enforcement since 2018. This admission has sent shockwaves through the crypto community, which relies heavily on privacy and security.

Despite the revelation, Toncoin's price has remained relatively stable, showing only minor fluctuations.

A Longstanding Policy

Durov, founder and CEO of Telegram, made the disclosure following his recent arrest related to allegations of facilitating illegal activities on the platform. After his release, Durov initially vowed to clamp down on illegal content. However, he later clarified his stance, admitting that Telegram has long cooperated with authorities under certain conditions.

"Whenever we received a properly formed legal request through official channels, we verified it and disclosed the IP addresses or phone numbers of individuals involved in serious criminal activities. This process has been in place for years," Durov stated.

This announcement unveiled a policy that had been quietly implemented for years. Durov maintained that Telegram's core values of freedom, privacy, and protection for activists remain intact.

Crypto Community Response

However, many in the crypto space are alarmed. Deddy Lavid, CEO of Web3 security firm Cyvers, expressed his concerns in an exclusive interview with BeInCrypto.

"Telegram’s disclosure of user IP addresses is troubling for the Web3 community because it contradicts the principles of privacy and decentralization that Web3 is built upon. Users frequently share wallet addresses on Telegram, and if these are linked to IPs, it could compromise their identities," Lavid explained.

Durov insisted that Telegram's cooperation with law enforcement has not changed, but acknowledged an uptick in requests from authorities in recent weeks. The crypto security community fears this policy could allow centralized platforms to connect users' personal data with blockchain activity, exposing them to privacy risks.

"In response, Web3 projects may start shifting to decentralized communication tools that better protect user data and privacy," Lavid added.

Toncoin's Market Reaction

In the hours following Durov’s admission, Toncoin (TON) saw a slight dip in value, though it hasn’t triggered significant market reactions yet. It remains to be seen whether this development will lead to further declines in TON’s price. Earlier fluctuations in Toncoin’s valuation have corresponded with Durov’s legal challenges, and this situation might follow the same pattern.

As the situation unfolds, there is potential for further market volatility, especially if concerns over Telegram’s privacy practices continue to grow in the crypto community.