Telegram Caps Rocky Year with Profit Breakthrough and $500M in Cash

The messaging app favored by crypto enthusiasts, Telegram, has become profitable for the first time since its launch over a decade ago, according to its founder and CEO, Pavel Durov, on Monday.

“As I predicted, 2024 turned out to be a very good year,” Durov shared via his Telegram channel. While he didn’t disclose exact profit figures, he confirmed the platform’s revenue exceeded $1 billion, driven by a surge in premium accounts, which have tripled to 12 million subscribers. Telegram is closing the year with $500 million in cash reserves, excluding its crypto holdings.

Crypto has played a significant role in this achievement. The app reportedly sold hundreds of millions of dollars in cryptocurrency, including Toncoin—a token closely tied to Telegram—according to sources cited by The New York Times. The Financial Times reported that Telegram had nearly $400 million in crypto assets by the end of 2023, which surged to $1.3 billion in value during the first half of 2024.

Durov’s Legal Challenges
However, 2024 wasn’t without setbacks. Durov, estimated to be worth over $15 billion, remains embroiled in one of the most high-profile legal cases in tech. French authorities detained him in August on preliminary charges, including allegations of facilitating illegal activities such as drug sales and distribution of child sexual abuse material via Telegram.

Durov has dismissed the charges, stating, “Using laws from the pre-smartphone era to charge a CEO with crimes committed by third parties on the platform he manages is a misguided approach.” Released on €5 million bail, Durov must check in with French authorities twice a week and cannot leave the country.

Moderation and Toncoin Recovery
Despite legal woes, Telegram has intensified its moderation efforts, revising its terms of service and expanding its moderation team to over 750 contractors. Meanwhile, Toncoin has rebounded by 22% since September, according to CoinGecko data.

Bitgalactic’s Take
Telegram’s profitability marks a pivotal moment, especially given its deep ties to the crypto world. The platform’s success in monetizing its services aligns with growing demand for decentralized ecosystems, but it also highlights the precarious balance of innovation and accountability.

Durov’s legal troubles cast a shadow over Telegram’s achievements. Bitgalactic believes the case underscores the urgent need for updated global frameworks to address platform liability without stifling innovation. As Toncoin shows resilience and Telegram scales its moderation, the platform’s trajectory could redefine the intersection of messaging, privacy, and crypto-based finance. However, regulatory clarity will be key to sustaining its momentum in 2025.