Telegram Raises $1.5B In Bond Sale Despite CEO's Legal Battle In France

Despite its CEO being barred from leaving France due to a criminal investigation, messaging platform Telegram (CRYPTO: TON) is set to raise at least $1.5 billion through a new bond sale, according to a report.

The funding round, expected to be finalized Wednesday, signals investor confidence in the platform's financial trajectory and user base, even as its founder, Pavel Durov, faces legal scrutiny abroad, The Wall Street Journal reported.

French prosecutors have charged Durov preliminarily with failing to assist in investigations involving illicit activity, including child exploitation, on the Telegram platform.

Both Durov and the company maintain they've complied with all enforceable legal requests.

"We complied with all the binding legal requests we received. So up until this day, we don't understand what we did wrong," Durov said via video at a conference in Oslo on Tuesday.

The bond, which carries a 9% yield and a five-year maturity, will allow investors the option to convert their holdings into Telegram shares at a discount should the company eventually go public.

However, a public listing appears unlikely in the short term, given market instability and Durov's current legal entanglements.

The proceeds will be used to retire Telegram's earlier debt, specifically, bonds issued in 2021 that mature next March.

Also Read: Dogecoin, Shiba Inu And Other Meme Coins Are Entry Points To Crypto Ecosystem: Report

Telegram has already repurchased about $400 million worth of those bonds using available funds.

Notable investors in the new bond issuance include returning stakeholders such as BlackRock (NYSE:BLK) and Abu Dhabi's Mubadala, with new participants expected to include Citadel and other hedge funds.

Durov had attempted to obtain permission to travel to the U.S. for meetings related to the deal but was denied by French authorities, who said the trip lacked sufficient justification.

Telegram's business, meanwhile, continues to expand rapidly. In March, the company reached 1 billion monthly active users.

On Tuesday, Durov reported over 15 million paying subscribers, a figure that has doubled year-over-year.

Financial documents reviewed by the Wall Street Journal indicate Telegram earned approximately $540 million in profit on $1.4 billion in revenue for 2024, a sharp turnaround from its $173 million loss on $342 million revenue in 2023.

For 2025, the company is forecasting over $700 million in profit on $2 billion in revenue.

This financial growth is largely attributed to Telegram's expanding monetization tools, including digital in-app purchases, a growing bot ecosystem, and its advertising business.

Read Next:

• Michael Saylor Calls Proof Of Reserves A ‘Crypto Parlor Trick’, But Binance’s Ex-CEO CZ Isn’t Having It: ‘He Probably Sold Bitcoins’

Image: Shutterstock