MOSCOW – Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum and former head of Binance operations in Russia, has been arrested in Moscow on large-scale fraud charges, according to reports by Russian state media TASS.
The court has approved his pre-trial detention while the investigation continues. Smerkis is being prosecuted under Article 159 of Russia’s Criminal Code, which covers fraud on a large scale. If found guilty, he could face 2 to 12 years in prison.
According to Russian outlet Mas, the charges are linked to Smerkis’s past involvement in crypto ventures like The Token Fund and Tokenbox, which allegedly caused investors to lose around $15 million.
Blum Distances Itself
The crypto project Blum, which operates on Telegram Mini Apps, announced via X (formerly Twitter) on May 18 that Smerkis had officially resigned as Chief Marketing Officer. The team emphasized that he is no longer involved with the project in any capacity.
Despite the controversy, Blum reassured its community that its platform will continue to operate as usual, allowing users to trade crypto, earn rewards, and participate in token airdrops.
Community Concerns Grow Over Airdrop
However, the arrest has amplified skepticism surrounding Blum’s upcoming BLUM token airdrop. Although Blum previously stated users could qualify by accumulating points in its “Drop Game” until Q3 2025, recent silence from the team has stirred doubt and frustration.
Crypto influencer RK Gupta voiced the sentiment of many in the community:
“No airdrop. No updates. Just silence. Was it all for nothing?”
With the airdrop’s future unclear, pressure is mounting on Blum to address concerns and deliver on its promises.
