The recent detention of Telegram founder Pavel Durov is causing repercussions in the crypto venture capital sector, particularly among firms that have invested heavily in Toncoin, a cryptocurrency closely tied to the popular messaging app.

Notable crypto venture capital firms such as Pantera Capital Management, Animoca Brands, and Mirana Ventures have significant holdings of Toncoin tokens, which are used for activities such as instant payments on Telegram.

Pantera Capital, one of the largest crypto-focused venture capital funds, reportedly invested over $100 million in Toncoin earlier this year, according to a source familiar with the matter. Toncoin’s appeal was largely due to the belief that Telegram, with its large user base of 900 million, would evolve into a digital asset “super app” similar to China’s WeChat, where Toncoin could be used for a range of activities from payments to blockchain-based gaming.

This optimism led to a surge in Toncoin’s value, with the token quadrupling in price between February and early July. At its peak, the total value locked (TVL) on its blockchain briefly surpassed $1 billion.

Following Durov’s arrest near Paris on August 24, Toncoin’s value dropped by around 20%, but it has since recouped some of those losses. As reported by DefiLlama, the total value locked on the TON blockchain has also fallen to $573 million.

Pantera Capital, which described Toncoin as its largest investment, did not disclose the exact amount invested. The California-based firm controls approximately $5 billion in assets.

Pantera purchased Toncoin at a 40% discount to its current market price, a source said. Despite recent market volatility, Pantera’s investment remains profitable based on the average price of $6.32 in May when the deal was announced.

*This is not investment advice.