The story: The CEO of Iran’s version of Craigslist—popular e-commerce website Divar—has been sentenced to three months in prison. This comes after prosecutors accused him of allowing his platform to be used for prostitution.

Ashkan Armandehi is the latest among a growing number of Iranian tech bosses who are finding themselves behind bars for actions undertaken by users of their platforms. This is raising concerns in Iran that the judiciary may be driving potential investors and entrepreneurs away from the country’s emerging start-up scene.

The coverage: Armandehi, who had been initially sentenced nearly two years ago, tweeted on Nov. 27 that he had lost his appeal and would have to serve three months and one day in prison...