Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum, has been arrested in Moscow over allegations of large-scale fraud.
His arrest comes as the project publicly confirms his complete disassociation from the team.
According to a May 18 report by Russian state media outlet TASS, the Zamoskvoretsky District Court approved investigators’ request to keep Smerkis in pre-trial detention. He is being investigated under Article 159 of the Russian Criminal Code, which deals with large-scale fraud — a charge that could carry a prison sentence of two to 12 years if proven guilty.
While no formal charges have been confirmed, Russian news outlet Mash reported that the allegations stem from Smerkis’ earlier ventures — The Token Fund and Tokenbox — which he co-founded in 2017. These platforms reportedly led to investor losses amounting to around $15 million.
Smerkis, who also previously held an executive role at Binance Russia, has officially resigned from Blum, where he served as Chief Marketing Officer. In a public statement shared via X on May 18, Blum announced that Smerkis would no longer play any role in the project and assured its community that operations remain unaffected.
We would like to inform our community that Vladimir Smerkis has stepped down from his role as CMO and is no longer involved in the development of the project or in any co-founder capacity.
— Blum (@blumcrypto) May 17, 2025
Despite the company’s attempt to separate itself from the controversy, the incident has stirred unease among Blum’s user base, particularly regarding the fate of the long-anticipated BLUM token airdrop.
Blum, known for integrating a decentralized exchange within Telegram Mini Apps, had built momentum through its Drop Game — a user-interactive event involving point collection by tapping snowflakes on-screen. These points were expected to be converted into BLUM tokens during a token generation event for Q3 2025.
Smerkis’s arrest has cast doubt on whether the airdrop will proceed as planned. Community members have taken to X to voice their concerns, demanding transparency.
“Blum owes its users a clarification on the planned airdrop,”
one member wrote, while crypto influencer RK Gupta criticized the silence: “No airdrop. No updates. Just silence. Was it all for nothing?”
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