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Founder and CEO of Telegram messaging service arrested in France
(www.tf1info.fr)
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Considering how hard it is for goverments to actually get Telegram to shutdown criminal chat groups or get chat logs (of unencrypted ) groups I think its at least more reasonable than the whole idea of banning E2E encryption.
Most Telegram groups I stumble across for anything even remotely illegal have been shut down, so it's clearly not as lawless as you're painting it to be.
It took the german goverment years to force Telegram to comply with their requests to get data and shut down specific groups. Also based on your location things that might be legal are not legal in a different location, from a German legal perspective there still lots of things happening in Telegram that are atleast a grey area(piracy, hate speech, porn) or straight up illegal(drugs, terrorist groups propaganda).
I am not in favor of the arrest or any goverment repression btw, I am just adding why goverments in europe might want to do stuff like this.