In a dramatic development within the crypto community, Vladimir Smerkis — a high-profile figure and co-founder of the Telegram-integrated crypto platform Blum — has been taken into custody in Moscow on suspicion of large-scale fraud. The arrest, reported by Russian state media outlet TASS on May 18, has sparked unease among users and investors connected to his previous crypto ventures.
The Zamoskvoretsky District Court in Moscow approved the detainment of Smerkis while a formal investigation unfolds. Although no criminal charges have officially been filed yet, authorities are acting under Article 159 of the Russian Criminal Code, which pertains to fraud on a substantial scale. If found guilty, Smerkis could be facing a prison sentence ranging from two to 12 years.
While the arrest is currently centered around alleged fraudulent activity, it’s important to note that the investigation appears to focus not on his role with Blum, but on earlier projects he was involved in — namely, The Token Fund and Tokenbox, both launched in 2017. According to Russian news outlet Mash, these ventures reportedly resulted in losses of approximately $15 million for investors.
Smerkis had previously served as Binance’s head of Russia operations, earning a reputation as a vocal advocate for crypto adoption in the region. However, his recent arrest signals a sharp fall from grace, with authorities now scrutinizing his past business dealings.
Blum Distances Itself From Its Co-Founder
In response to the news, Blum promptly issued a public statement on X (formerly Twitter), confirming that Smerkis had stepped down from his role as Chief Marketing Officer. The team clarified that Smerkis has no ongoing role within the company and that his departure occurred before the legal developments.
“Blum continues to operate with full focus on its vision and roadmap,” the statement said, emphasizing that the project remains unaffected by Smerkis’ personal legal matters. The team also reassured users that day-to-day operations and product development are continuing as planned.
Blum is a crypto startup that leverages Telegram’s Mini Apps infrastructure to offer a decentralized trading experience directly within the chat platform. Through its Drop Game — a gamified interface where users tap falling snowflakes to collect “Blum Points” — the company had promised to distribute BLUM tokens during an upcoming Token Generation Event (TGE), rumored to be scheduled for Q3 2025.
Community Concerns Over BLUM Airdrop
Despite Blum’s statement, Smerkis’ arrest has cast a shadow over the project’s future, particularly regarding its highly anticipated token airdrop. Many community members have taken to social media to express frustration and concern about the lack of communication.
“Blum owes its users a clarification on the planned airdrop,” one user posted on X, echoing a sentiment shared by many in the community. Popular crypto commentator RK Gupta also weighed in, writing: “No airdrop. No updates. Just silence. Was it all for nothing?”
While there has been no official delay or cancellation announced for the BLUM token airdrop, the sudden turbulence around a co-founder has naturally raised red flags. Trust is a fragile commodity in the crypto space, and even the appearance of instability can impact user confidence and market enthusiasm.
Final Thoughts
The arrest of Vladimir Smerkis serves as a sobering reminder of the crypto industry’s ongoing struggle to shake off past reputational issues linked to fraud and mismanagement. Although Blum is attempting to move forward independently of its embattled co-founder, the project now faces the additional challenge of rebuilding trust with its community and maintaining momentum in the lead-up to its token launch.
As legal proceedings unfold in Russia, the crypto world will be watching closely — not just to see what happens to Smerkis, but to gauge how effectively Blum navigates this storm and reassures its growing user base.
