Vladimir Smerkis, a co-founder of the Telegram-based crypto project Blum, has been arrested in Moscow, Russia, amid allegations of fraud. The arrest comes as Blum confirmed that Smerkis has resigned from his role as the project’s chief marketing officer. He will no longer be involved in any capacity.
Arrest and Legal Proceedings
The Zamoskvoretsky District Court of Moscow approved a request from investigators to keep Smerkis in custody while the investigation unfolds. According to TASS, a Russian state-owned news outlet, Smerkis is suspected of committing fraud on a “large scale.” This is pursuant to Article 159 of the Criminal Code of the Russian Federation, which carries potential imprisonment ranging from two to 12 years.
“Investigators have requested custody for Smerkis while the case progresses,” reported TASS.
It remains unclear whether formal charges have been filed against him. However, Russian news outlet Mash linked the fraud allegations to Smerkis’ involvement in The Token Fund and Tokenbox. These are two crypto ventures he co-founded in 2017. Investors reportedly suffered combined losses of approximately $15 million in these ventures.
Notably, Blum is not connected to The Token Fund or Tokenbox. This is confirmed by the project’s official statement on X (formerly Twitter).
Blum’s Response and Operational Continuity
In response to the situation, Blum issued a statement on May 18, confirming Smerkis’ resignation. They emphasized that its operations would continue unaffected.
The project, which integrates a decentralized exchange into Telegram Mini Apps, allows users to trade cryptocurrencies, earn rewards, and participate in token airdrops. Blum assured its community that the departure of Smerkis would not derail its objectives.
Community Concerns Over BLUM Token Airdrop
Despite Blum’s assurances, the arrest of Smerkis has sparked concerns among users about the future of the project’s planned BLUM token airdrop. On April 3, Blum hinted at a potential token listing in the third quarter of 2025. Users would earn Blum points through its newly launched Drop Game—a feature where users tap on snowflakes falling on their mobile screens to accumulate points. These points were expected to be converted into tokens during the project’s token generation event.
However, the news of Smerkis’ arrest has shaken community confidence. Many users are now questioning whether the airdrop will happen as planned.
Background on Vladimir Smerkis
Smerkis, who previously led operations for Binance in Russia, has been a prominent figure in the crypto space. His involvement in multiple blockchain ventures, including The Token Fund and Tokenbox, highlights his extensive experience in the industry. However, the allegations against him have cast a shadow over his professional legacy. They raised questions about accountability in the crypto ecosystem.
What This Means for Blum
While the arrest of Smerkis is undoubtedly a setback for Blum, the project insists that its roadmap remains intact. The team has reiterated its commitment to delivering on its promises. However, the lack of updates regarding the BLUM token airdrop has left users skeptical.
For now, the community awaits further clarification from Blum’s leadership to restore trust and ensure transparency.
