>>> US Close Dow +0.85% S&P +0.64% Nasdaq +0.31% Russell +1.19%

Closing Stock Market Summary
Today's trade featured a positive bias through the entire session, reflecting an ongoing buy-the-dip mentality after the S&P 500 entered correction territory last week. Losses in the mega cap space limited index performance in the early going, but market breadth reflected more buying interest under the index surface. Advancers had a 4-to-1 lead over decliners at the NYSE and a 5-to-2 lead at the Nasdaq.

Buying increased in many areas of the market in the afternoon trade, sending the major indices to session highs. This followed a Bloomberg report indicating that the newly confirmed U.S. Trade Representative Greer aims for a more orderly rollout of reciprocal tariffs on April 2.

The afternoon rebound was also helped by recovery action in a few mega cap names. Apple (AAPL 214.00, +0.51, +0.2%), which traded down as much as 1.6% at its low of the day, and Microsoft (MSFT 388.70, +0.14, +0.04%), which traded down as much as 0.8% at its worst level of the day, were influential winners in that respect. The two stocks combined comprise 13% of the S&P 500 in terms of market-cap.

Market participants were largely unbothered by this morning's economic releases. U.S. retail sales and retail sales, excluding autos, were weaker than expected in February, yet control group sales (excluding auto, gasoline station, building materials, and food services sales) were up a solid 1.0%. The New York Fed's Empire Manufacturing Survey for March showed a contraction in business activity and a pickup in prices paid and prices received.

Ten of the 11 S&P 500 logged gains, led by energy (+1.7%) amid rising oil prices ($67.58/bbl, +0.39, +0.6%). The move in oil was related to increased geopolitical tensions in the Middle East after President Trump warned Iran after Houthi attacks on US vessels that any further attacks by Houthi rebels will be looked upon as "a shot fired from the weapons and leadership of Iran." Uncertainty in the Middle East translates to higher prices in oil on concerns about supply disruptions.

Elsewhere, selling increased in Treasuries as buying picked up in equities following the pleasing tariff-related headline. The 10-yr yield settled the session unchanged from Friday at 4.31% and the 2-yr yield settled three basis points higher at 4.05%.
  • Dow Jones Industrial Average: -1.7% YTD
  • S&P 500: -3.5% YTD
  • S&P Midcap 400: -4.8% YTD
  • Nasdaq Composite: -7.8%
  • Russell 2000: -7.3% YTD

Reviewing today's economic data:
  • Retail sales increased 0.2% month-over-month in February (Briefing.com consensus 0.7%) following a downwardly revised 1.2% decline (from -0.9%) in January. Excluding autos, retail sales were up 0.3% month-over-month (consensus 0.4%) following a 0.6% decline (from -0.4%) in January.
    • The key takeaway from the report is that control group retail sales, which exclude auto, gasoline station, building materials, and food services sales, jumped 1.0% month-over-month following a downwardly revised 1.0% decline (from -0.8%) in January.
  • The New York Fed's Empire Manufacturing Survey for March showed the General Business Conditions Index declining to -20.0 in March from 5.7 in February. A number below 0.0 denotes a contraction in business activity in the New York Fed region. The Prices Paid Index rose five points to 44.9, its highest level in more than two years, while the Prices Received Index jumped three points to 22.4, hitting its highest level since May 2023.
    • The key takeaway from the report is that it plays into some of the stagflation worries that have infiltrated the market.
  • January Business Inventories increased 0.3%, as expected, following a 0.2% decline in December.
  • The March NAHB Housing Market Index dropped to 39 (consensus 43) from 42 in February.

Tuesday's economic data includes:
  • 8:30 ET: February Housing Starts (consensus 1.385 mln; prior 1.366 mln), Building Permits (consensus 1.450 mln; prior 1.483 mln), February Import Prices (prior 0.3%), Import Prices ex-oil (prior 0.1%), Export Prices (prior 1.3%), and Export Prices ex-agriculture (prior 1.5%)
  • 9:15 ET: February Industrial Production (consensus 0.2%; prior 0.5%) and Capacity Utilization (Briefing.com consensus 77.7%; prior 77.8%)

>>> Nanobiotix amends global licensing agreement for JNJ01900, extends cash visi

Nanobiotix amends global licensing agreement for JNJ01900, extends cash visibility to mid-2026
  • Co announced the execution of another disciplined step in its financial strategy through the amendment of the Company's global licensing agreement with Janssen Pharmaceutica NV, a Johnson & Johnson (JNJ) company.
  • The amendment removes Nanobiotix's funding obligation for NANORAY-312 and releases Johnson & Johnson from select future potential milestone payments, while safeguarding Nanobiotix's path to sustainable cashflow through significant potential milestone payments.

CrunchBase : SoftBank Vision Fund Bounces Back Into Action

SoftBank Vision Fund Bounces Back Into Action

Last week, the SoftBank Vision Fund 2 co-led a massive $120 million round for drama-laden cybersecurity startup Cybereason. The deal was just the latest round for SoftBank’s famed Vision Fund unit — which during the dizzying heights of the venture boom around 2021 would regularly invest in 50-plus deals a quarter but in late 2023 went deadly silent.

However, it now looks like Vision Fund 2 is coming back strong. In the last nearly two quarters, the fund has participated in 13 funding rounds — many of them large and many of them involving artificial intelligence — per Crunchbase data.

The baker’s dozen of deals, which included funding big rounds for the likes of QuEra Computing, Helion Energy and Perplexity, are more than the fund participated in the previous four quarters combined. In the 12 months through Q3 2024, the fund only took part in 10 deals.

Back on track?
Of course, just three years ago, 13 deals in five-plus months for the Vision Fund — once known for shrewd investments in startups including Uber and DoorDash — would hardly have been news. In Q3 2021 alone, the Vision Fund participated in 66 rounds.

But that was a very different time for venture investing. Interest rates were low, money was basically free, and venture capitalists couldn’t keep their checkbooks in their pockets for longer than five minutes.

When the market came back to reality in 2022, SoftBank founder Masayoshi Son said it would pull back on investments as the Vision Fund suffered big losses.

The respite seemed destined not to last long. By mid-2023, Son told investors he would again shift from “defense mode” as the firm wanted to be a leader in AI and robotics.

However, as Son made investments directly from SoftBank, the Vision Fund stayed quiet. For the two-year period between Q3 2022 and Q3 2024, the fund took part in only 33 deals.

That was not all that surprising considering the fund continued to get markdowns. Just last month, in fact, SoftBank reported a net loss of nearly $2.4 billion for its fiscal third quarter, including a loss of about $2 billion for its once-heralded Vision Fund unit as shares of Coupang and Didi fell.

Regardless, late last year the fund started to spark back to life. In the final quarter of 2024, the fund made six investments including participating in AI-powered search startup Perplexity’s high-profile $500 million Series D in December.

That was not its only AI-related deal. The Vision Fund also took part in data center firm GDS International’s massive $1.2 billion Series B.

However, while AI has played a role in the fund’s comeback, it has not ignored other sectors. The fund took part in New York-based clinical-stage biopharmaceutical startup Metsera’s $215 million Series B led by Venrock Healthcare Capital Partners and Wellington Management, as well as India-based Eruditus Executive Education’s $150 million Series F. The startup provides executive education programs.

The fund also made a strategic investment of an undisclosed amount in cloud security startup Wiz in November.

The new year
SoftBank has continued that investment cadence into 2025. Through early March, the Vision Fund made seven investments. Similar to Q4, the fund has taken part in some big rounds.

In January, it participated in the $100 million Series C for Seattle-based Umoja Biopharma, a developer of in vivo cell therapies, as well as a $200 million Series E for Spain-based business travel management platform TravelPerk.

The fund also co-led — along with Lightspeed Venture Partners and Sam Altman — the $425 million Series F for fusion startup Helion Energy. That round valued the energy startup at $5.4 billion, as investors look to pour cash into new energy sources as power needs increase due to AI and other advances.

Last month, the fund took part in Ireland-based no-code workflow automation platform Tines’ $125 million Series C, but co-led Boston-based neutral-atom quantum firm QuEra Computing’s $230 million convertible note offering along with Google Quantum AI.

What it means
Despite those deals, the fund likely will never jump back to its level of investment back in 2021.

However, it is interesting to note that even as some of the large crossover funds like Tiger Global Management and Dragoneer that helped lead the charge in venture in 2021 have yet to really come back to the industry, the Vision Fund seems more curious.

It is also interesting that while SoftBank itself seems laser focused on all things AI — OpenAI and the proposed $500 billion AI Stargate Project, for example — the Vision Fund has not narrowed its scope to just solely AI, but also deals in spaces such as biotech and cyber.

Of course, with the fund’s recent record, perhaps it would be wisest to keep its cash in its pockets. For startups, however, it may be exciting to see a larger investor re-emerging.

The Information : The Electric: Xiaomi's Latest EV Will Make It Harder for Tesla

The Electric: Xiaomi's Latest EV Will Make It Harder for Tesla To Grow This Year

Over the past year, Chinese smartphone maker Xiaomi has shown up two formidable U.S. brands: First, it released an electric car, something that Apple failed to do, despite spending an estimated $10 billion and a decade trying.

Then that EV—the Xiaomi SU7 sedan, the company’s first—outsold the Tesla Model 3 in China, 186,112 units to 171,519, from its release last March through February, according to the Chinese Passenger Car Association, which tracks auto sales in the country. Over the first two months of 2025, the SU7 has widened its lead, outselling the Model 3 by 74%, 46,625 units to 26,780.

Now, Xiaomi is going after Tesla’s flagship vehicle—the Model Y crossover SUV, the top-selling car in China in 2023 and 2024. In June or July, Xiaomi will release the YU7 crossover SUV in China, and many observers of the country’s auto industry expect the vehicle to be competitively priced and cut into Model Y sales.

Troy Teslike, the Twitter handle of a widely followed Tesla analyst, predicts Model Y sales will be 10% lower this year than they would have been without competition from the YU7, though he thinks the hit to Tesla could be greater. Lei Xing, former editor-in-chief of China Automotive Review, says the YU7 “will be the biggest Model Y killer yet.”

Tesla isn’t standing still: Last week, the Chinese tech news site 36kr reported that Tesla’s Shanghai facility had developed what appeared to be a cheaper, stripped-down version of the Model Y, with plans to release it in China. In a followup on Friday, Reuters reported that Tesla was calling the car the “E41” inside the company, that it was smaller than the current Model Y and cost 20% less to produce. According to the report, the car will reach large-scale production next year.

Even if true, that minimalist car would not be an answer to Tesla’s sales woes. Gary Black, managing partner of The Future Fund, tweeted that Tesla could only win substantial new sales by vaulting itself into a new industry segment, such as compacts. “Stripped down Model 3/Y vehicles would simply cannibalize the more expensive variants” of the cars, Black wrote.

Either way, the threat to the Model Y in China—Tesla’s second-largest market—reflects Tesla’s shift over the last year from a hypergrowth pioneer of the EV market to one facing a possible second year of shrinking global sales. Teslike forecasts that Tesla’s worldwide sales of its vehicles will decline 5.7% this year from 2024, after falling 1.1% in 2024 compared with the prior year.

Tesla sales in China increased 8.8% last year though revenue dropped amid a price war. Its sales in China could grow again this year but the Xiaomi SUV seems likely to erode the margin it achieved in 2024. “While the Model Y and Model 3 are still strong sellers in China,” Ed Kim, president of research firm AutoPacific, said new Chinese EVs including the YU7 and SU7 “are affordable, they're packed with tech, very relevant and tech that actually does make your life easier.”

Tesla opened its Shanghai gigafactory in 2019, and sparked China’s EV mania. Two years later, Xiaomi, until then a maker of smartphones and appliances, began developing an EV, as we reported. At the SU7 launch in Beijing last year, CEO Lei Jun targeted Tesla, claiming the car was superior to the Model 3 in most respects. He priced it $4,000 below the Model 3, in line with Xiaomi’s aggressive merchandising of smartphones.

Xiaomi is likely to undercut the $36,400 Model Y on price as well; one estimate is that the YU7 will initially go for $34,500. Last year, Lei told journalists that the company lost money selling cars, but said he was aiming for market share. Xiaomi has a big advantage: It owns stakes in more than 70 EV-related companies, from lithium mines to battery makers and electrolyte manufacturers, giving it a reliable supply chain.

Some early reviewers have compared the YU7’s styling to that of a mini Ferrari. It has a glass roof, and is fitted with lidar, a sensor that uses lasers, suggesting that Xiaomi will offer advanced driver assist features. The company says the car’s lithium-iron-phosphate battery will deliver roughly 288 miles on a charge.

If Tesla wants to hold its own, it will have to move faster than Xiaomi.

WSJ : Alphabet Back in Deal Talks for Cybersecurity Startup Wiz

Alphabet Back in Deal Talks for Cybersecurity Startup Wiz
A deal worth some $30 billion could come together soon, after talks fizzled last summer

Google parent Alphabet GOOGL -0.73%decrease; red down pointing triangle is in advanced talks to acquire cybersecurity startup Wiz for around $30 billion, according to people familiar with the matter.

A deal could come together soon, granted the talks don’t hit any last-minute snags, the people said.

Alphabet had been close to a roughly $23 billion deal for Wiz last summer, The Wall Street Journal previously reported.

The talks fell apart, however, as Wiz and some of its investors had concerns about the time it would take for a deal to clear regulatory hurdles, among other issues.

Any deal would likely still face regulatory scrutiny. It would also rank among the biggest so far this year.

Wiz, which offers cybersecurity software for cloud computing, is based in New York with additional offices in the U.S. and Israel. The startup partners with a number of the biggest cloud companies, including Amazon and Microsoft as well as Google, according to its website.

FT : FCA to ban Crispin Odey from financial services industry

FCA to ban Crispin Odey from financial services industry
Odey has said he will challenge the decision through the courts

Britain’s financial watchdog will ban Crispin Odey from the sector and fine the hedge fund founder £1.8mn for a “lack of integrity” in his conduct after he faced allegations of sexual harassment and assault.

Odey, who founded Odey Asset Management in 1991, “deliberately sought to frustrate OAM’s disciplinary processes into his conduct to protect his own interests”, the Financial Conduct Authority said on Monday.

Odey fell from grace after the Financial Times detailed allegations of sexual harassment and assault against him over a period of many years. He has strenuously disputed the allegations.

The hedge fund boss will challenge the FCA’s decision, which is provisional, by referring it to the Upper Tribunal, a superior court of record that has equivalent status to the High Court.

The watchdog’s action was not based on the sexual misconduct accusations against Odey themselves, but on his alleged attempts to frustrate the hedge fund’s efforts to address complaints about his behaviour and bring disciplinary proceedings against him.

The FCA said the hedge fund executive “demonstrated that he is not a fit and proper person to perform any function related to regulated activities” after he “showed reckless disregard” for his company’s governance and caused it to breach regulatory requirements.

Odey did not respond to a request for comment.

Between December 2021 and March 2022, Odey twice fired all of OAM’s executive committee after they planned disciplinary hearings about his behaviour, taking advantage of his majority shareholding in the business to replace them with himself, the FCA said.

After replacing the executives for the first time, Odey “indefinitely postponed” a disciplinary hearing into his conduct, saying he was “unable to conduct it with impartiality”, the FCA said, adding that his behaviour towards the fund and the regulator “lacked candour”.

“A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA.

“Odey repeatedly sought to evade and obstruct efforts to hold him to account,” said Chambers. “His lack of integrity means he deserves to be banned from the industry.”

Odey waived his right to make representations to the FCA’s regulatory decisions committee, which decided his punishment. He instead referred the matter directly to the courts, allowing him to hold back his legal arguments until the civil trial at the Upper Tribunal.

Odey last week made an unexpected visit to the London courtroom where former Barclays boss Jes Staley is challenging the UK financial regulator’s decision to fine and ban him over allegations he played down ties to the late sex offender Jeffrey Epstein.

The FCA usually only takes action against people it deems to not be fit and proper because of non-financial misconduct once they have been convicted or findings have been made in that regard.

In Odey’s case, it has taken action over alleged corporate governance failings in relation to disciplinary proceedings, rather than on any underlying allegations themselves.

The notice of the decision published by the FCA on Monday sets out how, in 2020, the hedge fund’s executive committee investigated allegations of sexual harassment and assault by Odey on female members of staff, including “improper physical contact”, making “sexualised” comments and issuing invites to lunches and shopping trips.

The executive committee found the behaviour was “inappropriate” and broke its own policies, but after Odey showed “signs of contrition” it decided he had not breached FCA rules and remained a fit and proper leader of the firm.

The committee issued Odey with a final written warning for misconduct in 2021, requiring him to comply with its rules and behave professionally with all staff or he would be ousted, which he signed.

The warning alluded to a climate of fear, saying that because “of a desire not to ‘ruffle feathers’ or because of concerns that nothing would be done . . . [some] employees would rather say nothing or even resign instead of lodging a complaint”.

When the committee subsequently investigated alleged breaches of its rules, it made contingency plans for Odey’s potential replacement and suggested he work remotely, which prompted him to threaten “winding down the firm”, the FCA said.

Odey expressed contempt for remote or separate work arrangements proposed by the committee, calling them “fncking spineless” and saying humans resources laws “did not matter here”, the FCA said.

The FCA listed several rules Odey caused his hedge fund to breach. They included that it must be managed by at least two persons of good repute, keep its risk management separate from other operations, and assess its leader’s fitness and propriety at least every year under the UK’s senior managers and certification regime.

Odey often blamed and threatened the FCA, the watchdog added, saying on one call with an official: “You will not get away with this — I have an agreement then you little guys, trying to do your work in the shadows. You are about to create a crisis . . . I will walk and leave you to clean up the mess.”

OAM “is currently in wind-down and has been rehousing funds and transferring certain fund management activities to other asset managers”, the FCA said.

The hedge fund founder has not been authorised by the FCA to carry out any regulated financial services activity since 2023, while his firm had its authorisation removed last year. OAM managed $13.3bn in assets at its peak.

The FCA’s proposed ban on Odey comes as it works to tighten guidelines on how financial institutions should tackle misconduct such as bullying and sexual harassment. Last week it said the proposals had been delayed and would now be published by June.

Odey is fighting a personal injury claim in a civil court filed by five of his alleged victims. He is contesting the claims and has also issued a libel claim against the Financial Times, which the FT is defending.

FT : Missile maker MBDA takes more calls from EU militaries seeking non-US weapo

Missile maker MBDA takes more calls from EU militaries seeking non-US weapons
European group in talks with regional customers as Trump threatens to drop security guarantees

European missile maker MBDA has been fielding more inquiries from the region’s militaries, as countries consider reducing their reliance on US-made weapons.

Chief executive Eric Béranger said since the start of the year, he was having more discussions with countries, which he declined to name, amid fears that Washington is withdrawing from its traditional role as Europe’s ultimate security guarantor.

“We are being consulted by countries who historically were always relying only on American capabilities and who are now coming to us and consulting us,” he said in an interview.

Best known for making the long-range Storm Shadow/Scalp cruise missiles that have been used in Ukraine, MBDA manufactures a range of missiles used on air, land and sea primarily for the French, British, and Italian armies, and others.

The company is one of the few truly cross-border defence companies in Europe, and is owned by Britain’s BAE Systems and Airbus, which hold 37.5 per cent respectively, and Italy’s Leonardo, which holds the balance.

“The acts and declarations of US officials are creating uncertainty in the minds of various heads of states about how much and how far they can rely on the US as an ally,” Béranger said.

His comments came as MBDA reported 2024 year-on-year revenue growth of 9 per cent to €4.9bn, while its order book more than doubled from 2021 before the war in Ukraine to a record €37bn. It has been pushing to increase production, as have other European defence companies, but the process has been slow because of complex manufacturing, supply chains and hiring needs.

US President Donald Trump’s hardline approach to Ukraine and insistence that Europe carry more of the burden of its own security has spurred the region’s governments to accelerate plans to build up national capabilities. Germany is planning massive spending on defence, while the EU commission has proposed €150bn of new loans and a relaxation of the bloc’s caps on deficits freeing up national governments to spend up to €650bn.

Canada and Portugal have in recent days signalled they are willing to consider alternatives to the US-made F-35 fighter jet. Canada in 2023 agreed a contract with Lockheed Martin to purchase up to 88 jets although it has so far committed funds for just 16 aircraft. Portugal’s air force had recommended purchasing F-35 jets but the country’s outgoing defence minister said last week it could not ignore the geopolitical environment.

In Europe, many countries have for decades also relied on Raytheon’s battle-proven long-range Patriot air defence system, including Germany, Poland, Belgium and Spain.

In part due to the Patriot’s established global network of customers, the first generation of MBDA’s rival land-based system called the SAMP-T struggled to penetrate the market and was only bought by France and Italy, who bankrolled its creation. A naval version of the system, also used by the UK, has been more successful.

Béranger said the new model of the SAMP-T set to come to market next year would have better commercial prospects, helped by the diplomatic backdrop.

MBDA was already in discussions with Denmark and Belgium over the new SAMP-T system, said people familiar with the matter, where it is competing against the Patriot. Winning such a contract would be an achievement for France and Italy, who have lobbied European allies to buy it.

In an effort to wean Europe off from US weapons, the EU commission is working on rules for its lending programme that would set quotas to prioritise weapons made by companies from the region. But member states do not agree on how these regulations should work — France is pushing to exclude US arms manufactured under licence in Europe, an idea that Germany and the Netherlands oppose.

Béranger said beyond quotas, it was important to “have the mindset to be more European”, adding that the so-called design authority — the company or organisation that creates and can modify a particular weapon — should reside in Europe. This would exclude products made under licence in Europe, although MBDA has begun work on a facility in Germany that will build the Patriot under licence from Raytheon.

Having control over the Storm Shadow programme allowed MBDA to quickly adapt the missiles to fit on Ukrainian fighter jets. “If we had been manufacturing under licence, we would have had to ask the US for permission,” Béranger said.

FT : Putin lets western investors sell some Russian shares ahead of Trump talks

Putin lets western investors sell some Russian shares ahead of Trump talks
Kremlin decree allows firms including Jane Street, GMO, and Franklin Templeton to offload holdings

Vladimir Putin has allowed a group of western asset managers and hedge funds to offload Russian securities left in limbo by Russia’s invasion of Ukraine, one day before the Russian leader is due to speak to Donald Trump in ceasefire talks.

Investors including Jane Street, GMO, and Franklin Templeton were approved to sell shares in Russian companies to a US hedge fund called 683 Capital Partners, Putin said in a decree published on Monday.

The hedge fund would then be free to transact with two Russian investment funds without the need for further authorisations by Putin, the decree added.

New York-based 683 Capital Partners did not immediately respond to a request for comment. Managed by Ari Zweiman, the firm oversaw $1.6bn in assets at the end of 2024, according to US Securities and Exchange Commission filings.

Shortly after the start of Russia’s full-scale invasion of Ukraine in 2022, Putin signed a decree banning international investors from dealing in the shares or bonds of Russian banks and energy companies. Any such transaction required a sign-off from Russian authorities.

Western owners of stock in Russian companies such as Norilsk Nickel, VTB Bank and Rosneft have largely marked their holdings as worthless given the restrictions on selling and the impact of sanctions on Russia.

Jane Street, GMO and Franklin Templeton did not immediately respond to requests for comment on the decree.

The move to allow some trading comes a day before Putin and Trump are set to hold a phone conversation in the latest push to broker a 30-day ceasefire deal.

Because of sanctions on Russia, western investors have usually sought to gain permission from regulators at home before they exit Russian assets, alongside authorisation by the Kremlin. It is not clear if such permission has been obtained by the investors mentioned in the decree.

The Russian rouble has risen by 36 per cent against the US dollar so far this year and Russian stocks have also gained on bets that the US will soon loosen its sanctions on Russia, that have cut Moscow off from western financial markets and prevented many international funds from buying or selling Russian assets.

TechCrunch : Telegram founder, Pavel Durov, allowed to leave France — despite on

Telegram founder, Pavel Durov, allowed to leave France — despite ongoing criminal investigation

Pavel Durov, the founder and CEO of messaging app Telegram, no longer has to stay in France. A source told AFP that the investigating judge in charge of Durov’s case has accepted a request to modify the conditions of his supervision.

“As you may have heard, I’ve returned to Dubai after spending several months in France due to an investigation related to the activity of criminals on Telegram,” Durov wrote on Monday in a message posted to his Telegram channel. “The process is ongoing, but it feels great to be home.”

Durov was arrested on August 24, 2024, after he stepped off a private jet at France’s Le Bourget Airport. He spent four days in police custody — leading to widespread coverage of his arrest.

Shortly afterwards, the Paris criminal court, which is in charge of the investigation, explained the reasons for his arrest. Most of the charges revolve around the Telegram founder allegedly being complicit in facilitating organized fraud, illegal transitions, and the sharing of CSAM (child sexual abuse material) on the messaging and social platform.

At the time, Durov agreed to pay a €5 million bail ($5.5 million at current exchange rates) and to check in at a police station twice a week. He was also barred from leaving France during the investigation. But those conditions appear to have been modified now — enabling him to leave the country legally.

The Paris court did not release a statement regarding the reasons for changes to Durov’s supervision conditions.

A few days after his arrest, Telegram updated its website and app to explicitly allow users to report private chats to its moderators. Before the arrest, the company had said that it “[did] not process any requests related to [moderating chats and group chats].”

Following this radical change of course, Telegram removed millions of groups and channels.

In further remarks on Durov’s channel announcing his arrival in Dubai, the Telegram CEO wrote: “I want to thank the investigative judges for letting this happen, as well as my lawyers and team for their relentless efforts in demonstrating that, when it comes to moderation, cooperation, and fighting crime, for years Telegram not only met but exceeded its legal obligations.”

Durov isn’t out of the woods just yet. Despite his cooperation, the investigation remains ongoing and it could still lead to a criminal trial in France. On the plus side, at least Durov won’t have to file his 2025 taxes in France.