FOGINT: Telegram Steps Up Its Cooperation with Law Enforcement
December 12, 2024
This short item is the work of the dinobaby. The “fog” is from Gifr.com.
Engadget, an online news service, reported “Telegram Finally Takes Action to Remove CSAM from Its Platform.” France picks up Telegram founder Pavel Durov and explains via his attorney how the prison system works in the country. Mr. Durov, not yet in prison, posted an alleged Euro 5 million with the understanding he could not leave the country. According to Engadget, Mr. Durov is further modifying his attitude toward “free speech” and “freedom.”
The article states:
Telegram is taking a significant step to reduce child sexual abuse material (CSAM), partnering with the International Watch Foundation (IWF) four months after the former’s founder and CEO Pavel Durov was arrested. The French authorities issued 12 charges against Durov in August, including complicity in “distributing, offering or making available pornographic images of minors, in an organized group” and “possessing pornographic images of minors.”
For those not familiar with the International Watch Foundation, the organization serves as a “hub” for law enforcement and companies acting as intermediaries for those engaged in buying, leasing, selling, or exchanging illicit images or videos of children. Since 2013, Telegram has mostly been obstinate when asked to cooperate with investigators. The company has waved its hands and insisted that it is not into curtailing free speech.
After the French snagged Mr. Durov, he showed a sudden interest in cooperating with authorities. The Engadget report says:
Telegram has taken other steps since Durov’s arrest, announcing in September that it would hand over IP addresses and phone numbers in legal requests — something it fought in the past. Durov must remain in France for the foreseeable future.
What’s Telegram going to do after releasing handles, phone numbers, and possibly some of that log data allegedly held in servers available to the company? The answer is, “Telegram is pursuing its next big thing.” Engadget does not ask, “What’s Telegram’s next act?” Surprisingly a preview of Telegram’s future is unfolding in TON Foundation training sessions in Vancouver, Istanbul, and numerous other locations.
But taking that “real” work next step is not in the cards for most Telegram watchers. The “finally” is simply bringing down the curtain of Telegram’s first act. More acts are already on stage.
Stephen E Arnold, December 12, 2024
Telegram: Edging Forward in Crypto
December 12, 2024
This blog post flowed from the sluggish and infertile mind of a real live dinobaby. If there is art, smart software of some type was probably involved.
Telegram wants to be the one stop app for anonymous crypto tasks. While we applaud those efforts when they related to freedom fighting or undermining bad actors, the latter also uses them and we can’t abide by that. Telegram, however, plans to become the API for crypto communication says Cryptologia in, “DWF Labs’ Listing Bot Goes Live On Telegram.”
DWF Labs is a crypto enterprise capital firm and it is launching an itemizing Bot on Telegram. The Bot turns Telegram into a bitcoin feed, because it notifies users of changes in the ten main crypto exchanges: Binance, HTX, Gate.io, Bybit, OKX, KuCoin, MEXC, Coinbase Alternate, UpBit, and Bithumb. Users can also watch foreign money pairs, launchpad bulletins, and spot and/or futures listings.
DWF Labs is on the forefront of alternative currency and financial options. It is a lucrative market:
“In a latest interview, Lingling Jiang, a Associate at DWF Labs, mentioned DWF Labs’ place on the forefront of delivering liquidity providers and forging alliances with conventional finance. By offering market-making assist and funding, Jiang stated, DWF Labs provides tasks the infrastructure needed to grasp of tokenized belongings. With the launch of the brand new Itemizing Bot, DWF Labs brings market information nearer to the retail consumer, particularly these on the Telegram (TON) community. Following the introduction of HOT, a non-custodial pockets on TON powered by Chain Signature, DWF Labs’ Itemizing Bot is one other welcome addition to the ecosystem, particularly within the mild of the latest announcement of HOT Labs, HERE Pockets and HAPI’s new joint crypto platform.”
What’s Telegram’s game for 2025? Spring Durov? Join hands with BRICS? Become the new Morgan Stanley? Father more babies?
Whitney Grace, December 12, 2024
FOGINT: Pavel Durov: A Waffling Borzoi with a Shock Collar Now?
December 11, 2024
Information from the FOGINT research team. No smart software involved.
Cointelegraph, one of the “future of money” news services covering crypto ran an interesting story on Saturday, December 7,2024. “Telegram Found Pavel Durov Questioned in Paris Court for First Time: Report.” We know this is a blog post about a write up sharing information from another source. Keep this dicey chain in mind.
The core of the story is that Pavel Durov was under the control of French authorities in August 2024. Wikipedia reports that Mr. Durov may have met with Vladimir Putin before jetting to Paris and landing at Paris-Le Bourget Airport. In the last three months, information about Mr. Durov’s and his lawyer’s interaction with the French authorities has been limited. After 90 days of having his movements restricted, Mr. Durov has been rumored to:
- Expressed a desire to cooperate with law enforcement when duly authorized requests for alleged bad actors is provided to “Telegram”, which is Mr. Durov for practical purposes. Pavel’s brother Nikolai seems pre-occupied with technical issues related to the Telegram platform.
- Telegram has apparently agreed to interact with organizations focused on preventing human trafficking and child sexual abuse material
- Reversing course on his statements about responding to government pressure. One example was Telegram’s blocking of Ukrainian content from Ukrainian government agencies to Telegram users in Russia and possibly other countries in the Russian Federation.
Here’s what Cointelegraph reported:
Durov appeared in a Parisian court at 10 am CET on Dec. 6, alongside his lawyers David-Olivier Kaminski and Christophe Ingrain.
The lawyers have offices at 126 Boulevard St. Germain. Kaminski’s Web site says:
We specialize in criminal defense. The Kaminski law firm has built up recognized expertise in all areas of criminal defense. We can represent our clients at any stages of the judicial procedure, including police custody, preliminary investigation, judicial information, criminal court and before the assize court). The firm defends individuals as well as companies, legal entities, or institutions (Non-governmental organizations, associations, professional bodies). Kaminski’s catchphrase is, “The culture and practice of criminal defense is respect for fundamental freedoms.” https://www.kaminskiavocats.com/
Christophe Ingrain is part of the defense team. He was / is affiliated with Darrois Villey Maillot Brochier. He was named one of the 30 most influential lawyers in France, and he appeared on a list of the “best layers” in France. His office is on Avenue Victor Hugo.
According to Cointelegraph:
An anonymous source familiar with the matter told the Agence France-Presse (AFP) that the questioning focused on the allegations tied to Telegram’s potential use for illicit transactions. When asked about the legal proceedings, Durov reportedly told the AFP that he “trusts the French justice” system but refused to elaborate on the case.
His “refusal” to comment means that the 40 year old with more than 100 children is listening to his French attorneys. He may also have been informed about France’s low profile prison system. La Santé was built in 1867 and entertains a number of high-risk criminals. For those who chat with French law enforcement officials, La Santé is often described as a place one goes but never leaves. This prison has a VIP section which is somewhat different from the VIP services available for online gamblers in pursuit of an ejunket. It is located in the 14th arrondissement. There are two other facilities in Paris as well. France also has some special purpose prisons located near military bases and allegedly a couple of in-ground facilities in North Africa. If “in-ground” does not resonate with you, you may not want to know the set at these alleged incarceration facilities. As a point of reference, French prisons are overcrowded but c’est dommage. As a rule of thumb one may want to avoid getting ensnared in the French judiciary or prison system. Red tape is a specialty of French bureaucrats, and it can be a challenging situation for defendants and their lawyers.
Cointelegram observes:
Industry insiders are worried that the case against Durov raises alarming concerns for privacy-preserving Web3 technologies.
The Web3 reference includes blockchain technology, distributed infrastructures like Telegram’s, distributed finance, and a number of other innovations. These can add to the investigative burden of law enforcement and tax authorities.
Durov has paid bail of $5 to $6 million. However, Cointelegraph points out:
If convicted, Durov could face up to 10 years in prison and a fine of €500,000 ($550,000).
Was Durov’s interaction with French authorities an accident or coincidence? No. France allegedly began a preliminary investigation if February 2024. In July 2024 that was promoted to a judicial inquiry. In August, he was apprehended.
Sean Brizendine, a blockchain researcher, told Beyond Search:
Mr. Durov definitely appears to be listening to his high-power legal team. He is obviously aware that everything is at stake.
Net net: FOGINT wonders if the prosecution of CSAM perpetrators will ramp up as Durov demonstrates his willingness to cooperate. What’s at risk for Telegram is that the significant push into crypto services could be derailed. Other “free speech” advocates will create alternative services, but that will be expensive and time consuming. The core of Telegram is not available as open source software. Most cyber professionals are not aware of the scope of the Telegram platform.
Stephen E Arnold, December 11, 2024
FOGINT: Telegram and Its Race Against Time
December 3, 2024
The article is a product of the humans working on the FOGINT team. The image is from Gifr.com.
The Financial Times recently stirred debate in the cryptocurrency community with its article, “Telegram Finances Propped Up by Crypto Gains As Founder Fights Charges.” Telegram’s ambitions for an initial public offering (IPO) hinge on proving it has a sustainable, profitable business model.
According to the FT, Telegram sold off cryptocurrency holdings to shore up its balance sheet, reporting revenue of $525 million. The financials, based on unaudited statements, framed the crypto sale as a “tactical” move, with Durov’s confinement in France having no material impact on the company.
CCN added flair with its piece, “Pavel Durov’s Telegram Nets $335M Windfall: Can It Ride a Crypto Bull to a $30B IPO by 2026,” highlighting that while crypto revenues and TON reserves have helped Telegram stay afloat, the firm still faces substantial debt and operating losses—$259 million in 2023 alone.
Crypto.news zeroed in on debt in its article, “How Telegram Made Over Half a Billion Dollars Thanks to Crypto?” Telegram, wholly owned by Durov, has raised $2.4 billion in debt financing, with repayment looming in 2026. In September, it used part of its crypto proceeds to repurchase $124.5 million in bonds. (Note: None of the news sources we reviewed noted that Telegram is using a variant of the MicroStrategy strategy of acquiring crypto currency to pump up the company’s “value.” See DLNews for more detail.)
The FOGINT research team identifies three key dynamics:
- Cash Flow Through Crypto Sales: Telegram’s crypto transactions inject much-needed liquidity, transforming a significant 2023 loss into a manageable red blot on its financial history.
- Tight Links to The Open Network Foundation (TON): Despite TON’s ostensible independence, the Foundation is deeply intertwined with Telegram. This relationship traces back to the U.S. SEC’s 2019 intervention against GRAM (now TON), which forced Telegram to offload its blockchain to the “independent” Foundation in 2023. Regulators in the U.S., UAE, and Switzerland appear to tolerate this arrangement for now.
- Racing Against the Clock: Telegram is fast-tracking innovations, like the BotFather’s high-speed processing and partnerships with firms such as Ku Group. Its developer meetups and funding programs are designed to rapidly build out its ecosystem. The urgency stems from a softening stance toward law enforcement—Telegram now appears more willing to share user data, potentially feeding into global investigative pipelines.
This newfound openness aligns with Telegram’s aggressive push to monetize its TON blockchain. At the November 1-2 Gateway Conference in Dubai, Telegram launched an all-out campaign to promote its crypto ecosystem. From YouTube videos and meetups to venture fund pitches, the effort signals a company operating in overdrive.
Blockchain researcher Sean Brizendine said: “”The Telegram hype is definitely real, and the Durov brothers’ future is on the line. Now is the time to pay attention as Telegram’s moves are breaking fast and furious.”
Why the rush? Telegram’s 900 million users and its wildly popular crypto games have been critical growth engines. But with its ethos of “do what you want” giving way to “use our crypto platform,” the stakes are higher than ever. The “leader” is in the grasp of French authorities. Fast-fashion-like life cycles of its crypto ventures underline a harsh reality: For Telegram, succeeding in crypto is no longer optional—it’s a turning point for the company and its affiliated organizations. Cornered animals can be more dangerous than some people think.
Stephen E Arnold, December 3, 2024
FOGINT: Telegram and Its Possible Latent Weakness
December 2, 2024
This write up is the work of a dinobaby. Thanks to Gifer.com for the moving fog!
Cointelegram gathered some interesting information about Telegram. Let’s take a look at some of the data in Cointelegraph’s “Telegram’s Crypto Holdings Rose to $1.3B in H1 2024,” November 25 or 26, 2024. Verification of the data is difficult, which is a frequent issue where crypto valuations are presented. Let’s assume that the general information reflects Telegram’s business position.,
According to the article:
Telegram’s crypto holdings jumped from $400 million to $1.3 billion in H1 2024, driven by Toncoin sales and strategic deals.
Translating: Telegram dumped some crypto, made a profit, and reported the upside to fatten its financial position.
The key point is that Telegram allegedly had about $400 million in digital assets. Now the company has more than $1 billion.
Allegedly Telegram generated about $500 million in revenue in the period from January to June 2024. The boost does not come from advertising and subscriptions. Crypto dealing and other business agreements have bolstered the company’s apparently positive financials. It is worth noting that an audit of Telegram’s finances is rumored to have reported that Telegram lost money in a previous financial period.
The Cointelegraph story reminded its readers that Pavel Durov is confined to France. His legal issues have not been resolved. He has posted bail in the neighborhood of $5 million euros, an indication of the seriousness of the French charges against him.
The FOGINT’s research team notes:
- Telegram is making significant moves with its tie ups with organizations like CryptoCasino.com. This is part of the firm’s effort to become the platform for Telegram-centric gaming
- The Open Network Foundation (which runs on the Telegram platform) continues to promote the TON crypto and the Telegram-centric capabilities on which the Foundation’s services run. One of these initiatives involves investing in TON-centric applications and holding training courses in major international cities.
- Telegram’s “value” as an allegedly secure messaging app is eroding. Mr. Durov has insisted that Telegram cooperates with law enforcement. Those statements mean that Telegram has to kick its online gaming activities and the Foundation’s financial services into high gear.
Net net: Telegram may be strong at first glance, but there may be a latent weakness in the Telegram, Foundation, and TON.Social entities.
Stephen E Arnold, December 2, 2024
FOGINT: Telegram Shifts from Pretending to Promoting Its Casino Play
November 26, 2024
An online service named “EuropeanGaming.eu” published an interesting story about Telegram. As you may know, the founder of VKontakte.ru and Telegram Messenger has been detained by French authorities. Coincident with this restriction on Pavel Durov’s travel, the organizations with which he has been associated have been doing fast-cycle innovation.
The story “CryptoCasino.com Launch to Disrupt iGaming with Groundbreaking Telegram Casino” reports that Telegram has launched:
an innovative Telegram casino that is set to drive player acquisition in the rapidly growing blockchain betting space.
The features of the Telegram casino include — obviously — crypto currency and blockchain as well as:
- 6,000 online slots and table games
- A live dealer casino
- An extra fee sports betting service
- Support for a number of crypto currencies.
The CryptoCasino will feature a new “token” called $CASINO. After the US Securities & Exchange Commission put pressure on Telegram’s fund raising for its GRAM coin, Mr. Durov rejiggled the Telegram operation to accommodate a non-profit operation focused on free speech, building support for broader financial services based on crypto, and a nominal owner of the TON coin. (TON coin is the GRAM crypto renamed and donated to the Open Network Foundation.)
This “casino play” adds to Telegram’s revenue stream opportunities. The write up points out:
CryptoCasino is catering to the over one billion unique Telegram users by building a Telegram Casino integration that allows anybody to immediately join and begin playing with just one click.
The commissions and other fees are one potentially lucrative revenue stream for Telegram.
A second revenue opportunity is the introduction of “VIP” services or “very important person” services. The United Nations’ 2024 UNODC reports in January and October do a very good job of explaining the “value” of casino activities and revenue. You can locate the United Nations’ reports at https://www.unodc.org/.
To get this “casino play” off the ground, the European Gaming report says:
the CryptoCasino .com team understands that the key to rapid growth comes from partnerships with trusted names in the online gaming business. That is why CryptoCasino has partnered with several major names in betting and blockchain including Pragmatic Play, Evolution Gaming, Betby, Oddin. gg, Decubate, Covey, Fireblocks, and others. Certified through CertiK and as a fully licensed platform under Curacao and Anjouan gaming authorities, the platform will provide the highest level of player safety and security, complying with all regulatory statutes for the best crypto betting experience possible.
Will this initiative succeed? Will the French authorities pursue an inquiry into this facet of Mr. Durov’s business interests? How will the Telegram CryptoCasino.com “player” move currency from one wallet to another in Telegram’s crypto environment? Will Telegram extend its cooperation with law enforcement to the new CryptoCasino.com “play”?
Several observations are warranted:
- Telegram is pushing the boundaries of its cooperation and compliance with some regulatory authorities
- The push into overt casino activities complements the effort to move from traditional financial regulatory restrictions to less regulated and controllable gambling activities
- The companion services for the new CryptoCasino.com “play” will have some appeal to those who seek to obfuscate certain types of financial activities.
Net net: Telegram may be responding to the government efforts to get Telegram to cooperate more enthusiastically with investigators by saying, “Okay, you want user names and mobile numbers, check out our encrypted blockchain based crypto play.”
Stephen E Arnold, November 26, 2024
FOGINT: Kenya Throttles Telegram to Protect KCSE Exam Integrity
November 20, 2024
Secondary school students in Kenya need to do well on their all-encompassing final exam if they hope to go to college. Several Telegram services have emerged to assist students through this crucial juncture—by helping them cheat on the test. Authorities caught on to the practice and have restricted Telegram usage during this year’s November exams. As a result, reports Kenyans.co.ke, “NetBlocks Confirms Rising User Frustrations with Telegram Slowdown in Kenya.” Since Telegram is Kenya’s fifth most downloaded social-media platform, that is a lot of unhappy users. Writer Rene Otinga tells us:
“According to an internet observatory, NetBlocks, Telegram was restricted in Kenya with their data showing the app as being down across various internet providers. Users across the country have reported receiving several error messages while trying to interact with the app, including a ‘Connecting’ error when trying to access the Telegram desktop. However, a letter shared online from the Communications Authority of Kenya (CAK) also confirmed the temporary suspension of Telegram services to quell the perpetuation of criminal activities.”
Apparently, the restriction worked. We learn:
“On Friday, Education Principal Secretary Belio Kipsang said only 11 incidents of attempted sneaking of mobile phones were reported across the country. While monitoring examinations in Kiambu County, the PS said this was the fewest number of cheating cases the ministry had experienced in recent times.”
That is good news for honest students in Kenya. But for Telegram, this may be just the beginning of its regulatory challenges. Otinga notes:
“Governments are wary of the app, which they suspect is being used to spread disinformation, spread extremism, and in Kenya, promote examination cheating. European countries are particularly critical of the app, with the likes of Belarus, Russia, Ukraine, Germany, Norway, and Spain restricting or banning the messaging app altogether.”
Encryption can hide a multitude of sins. But when regulators are paying attention, it might not be enough to keep one out of hot water.
Cynthia Murrell, November 20, 2024
FOGINT: Crypto Is a Community Builder
November 9, 2024
CreationNetwork.ai: A One-Stop Shop for All Your Digital Needs. And Crypto, Too!
Here is an interesting development. “CreationNetwork.ai Emerges As a Leading AI-Powered Platform, Integrating Over Twenty Two Tools,” reports HackerNoon. The AI aggregator uses Telegram plus other social media to push its service. Furthermore, the company is integrating crypto into its business plan. We expect these “blending” plays will become more common. The Chainwire press release says about this one:
“As an all-in-one solution for content creation, e-commerce, social media management, and digital marketing, CreationNetwork.ai combines 22+ proprietary AI-powered tools and 29+ platform integrations to deliver the most extensive digital ecosystem available. … CreationNetwork.ai’s suite of tools spans every facet of digital engagement, equipping users with powerful AI technologies to streamline operations, engage audiences, and optimize performance. Each tool is meticulously designed to enhance productivity and efficiency, making it easy to create, manage, and analyze content across multiple channels.”
See the write-up for a list of the tools included in CreationNetwork.ai, from AI Copywriter to Team-Powered Branding. The hefty roster of platform connections is also specified, including obvious players: all the major social media platforms, the biggest e-commerce platforms, and content creation tools like Canva, Grammarly, Adobe Express, Unsplash, and Dropbox. We learn:
“One of the most distinguishing features of CreationNetwork.ai is its extensive integration network. With over 29 integrations, users can synchronize their digital activities across major social media, e-commerce, and content platforms, providing centralized management and engagement capabilities. … This integration network empowers users to manage their brand presence across platforms from a single, unified dashboard, significantly enhancing efficiency and reach.”
Nifty. What a way to simplify digital processes for users. And to make it harder for new services to break into the market. But what groundbreaking platform would be complete without its own cryptocurrency? The write-up states:
“In preparation for its Initial Coin Offering (ICO), CreationNetwork.ai is launching a $750,000 CRNT Token Airdrop to reward early supporters and incentivize participation in the CreationNetwork.ai ecosystem. Qualified participants can secure their position by following CreationNetwork.ai’s social media accounts and completing the whitelist form available on the official website. This initiative highlights CreationNetwork.ai’s commitment to building a strong, engaged community.”
Crypto — The community builder.
Cynthia Murrell, November 11, 2024
FOGINT: Hong Kong: A Significant Crypto Wiggle
November 5, 2024
Hong Kong is taking steps to secure its place in today’s high-tech landscape. Blockonomi reports, “Hong Kong’s Bold Move to Become Asia’s Crypto Capital.” Tax breaks, regulations, and a shiny new virtual asset index underpin the effort. Meanwhile, the Virtual Asset Trading Platform regime launched last year is chugging right along. We suspect Telegram is likely to be the utility for messaging, sales, and marketing.
Writer Oliver Dale tells us:
“The Hong Kong Exchanges and Clearing Limited (HKEX) announced the launch of a Virtual Asset Index Series, scheduled for November 15, 2024. This new index will provide benchmark pricing for Bitcoin and Ether specifically tailored to Asia-Pacific time zones. The Securities and Futures Commission (SFC) is working to finalize a list of crypto exchanges that will receive full licenses by year-end. Eric Yip, executive director for intermediaries at the SFC, revealed plans to establish a consultation panel by early 2025 to maintain oversight of licensed exchanges. The regulatory framework extends beyond trading platforms. Hong Kong authorities are developing comprehensive guidelines for crypto-focused over-the-counter trading desks and custodians, with implementation expected in the coming year. For stablecoin issuers, new requirements are being introduced. Foreign fiat-referenced stablecoin providers will need to establish physical operations in Hong Kong and maintain reserves in local banks.”
Establishing a physical presence in the city is no small thing. Though Hong Kong is a culturally rich and vibrant city, we hear real estate is at a premium. That is ok, we are sure stablecoin geniuses can afford it.
Hong Kong is also working to bring AI tools to the financial sector, but there it is caught between a rock and a hard place. Though a part of China, the dense and wealthy city operates under a unique “one country, two systems” governance framework. As a result, it has limited access to both western AI platforms, like Chat GPT and Gemini, and services from Chinese firms like Baidu and ByteDance. To bridge the gap, local institutions like The Hong Kong University of Science and Technology are building their own solutions. Officials hope tax incentives will attract professional investment firms to the city.
The stablecoin policies should go into effect by the end of this year, while custodian regulations and consultation on over-the-counter trading are to be established some time in 2025.
Cynthia Murrell, November 5, 2024
FOGINT: ANKR and TON Hook Up
October 30, 2024
A humanoid wrote this essay. I tried to get MSFT Copilot to work, but it remains dead. That makes four days with weird messages about a glitch. That’s the standard: Good enough.
The buzzwords “DePIN” and “SNAS” may not be familiar to some cyber investigators. The first refers to an innovation which ANKR embraces. A DePIN is a decentralized physical infrastructure or a network of nodes. The nodes can be geographically distributed. Instead of residing on a physical server, virtualization makes the statement “We don’t know what’s on the hardware a customer licenses and configures.” There is no there there becomes more than a quip about Oakland, California. The SNAS is a consequence of DePIN-type architecture. The SNAS is a super network as a service. A customer can rent big bang systems and leave the hands on work to the ANKR team.
Why am I mentioning a start up operating in Romania?
The answer is that ANKR has cut a deal with The One Network Foundation. This entity was created after Telegram had its crypto plans derailed by the US Securities & Exchange Commission several years ago. The TONcoin is now “open” and part of the “open” One Network Foundation entity. TON, as of October 24, 2024, is directly accessible through ANKR’s Web3 API (application programming interface).
Telegram organization allows TONcoin to “run” on the Telegram blockchain via the Open Network Foundation based in Zug, Switzerland. The plumbing is Telegram; the public face of the company is the Zug outfit. With Mr. Durov’s remarkable willingness to modify how the company responds to law enforcement, there is pressure on the Telegram leadership to make TONcoin the revenue winner.
ANKR is an important tie up. It may be worth watching.
Stephen E Arnold, October 30, 2024
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