Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum, has reportedly been arrested in Moscow on fraud allegations. According to Russian state media TASS, a Moscow court approved the request to keep him in custody during an ongoing investigation.
Smerkis, who previously led Binance operations in Russia, is under investigation for large-scale fraud under Article 159 of Russia’s Criminal Code, according to a report .
If convicted, he could face 2 to 12 years in prison. Russian outlet Mas linked the case to his earlier ventures. The Token Fund and Tokenbox, which allegedly caused investors to lose around $15 million.
Blum quickly distanced itself from the controversy. On May 18, the project confirmed via X (formerly Twitter) that Smerkis has resigned from his role as Chief Marketing Officer and will no longer be involved in any capacity.
Despite the arrest, Blum assured its community that operations will continue as usual. The project, which runs on Telegram Mini Apps, lets users trade crypto, earn rewards, and join token airdrops.
Upon release, the news stirred doubts for many regarding the planned BLUM token airdrop. There are many people in the community who are uncertain if it will actually unfold. From what we understood, Blum had already mentioned that users could join in Q3 2025 by accumulating points in the firm’s “Drop Game.”
Crypto influencer RK Gupta summed up the growing frustration: “No airdrop. No updates. Just silence. Was it all for nothing?” Now, all eyes are on Blum to deliver clarity and its promised tokens.
