- Vladimir Smerkis was arrested in Moscow for alleged large-scale fraud tied to past projects.
- Blum says operations will continue without disruption.
- Uncertainty grows around the planned BLUM token airdrop amid community backlash.
Russian authorities arrested Vladimir Smerkis, a co-founder of the Telegram-based crypto platform Blum, on fraud charges. A Moscow court quickly approved his detention as investigations are ongoing. The case reportedly connects to earlier projects that allegedly defrauded investors of $15 million.
Smerkis Detained Under Russia’s Criminal Code
Yesterday, May 18, the Russian state news agency TASS confirmed that Vladimir Smerkis was taken into custody in Moscow. According to a report, he is being investigated under Article 159 of Russia’s Criminal Code, which deals with large-scale fraud. If found guilty, he faces a sentence ranging from 2 to 12 years.
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The charges stem from past projects, including The Token Fund and Tokenbox, two crypto investment ventures. Russian outlet Mas reported that these platforms collectively led to approximately $15 million in investor losses.
Smerkis, previously held a leadership role at Binance in Russia, has not publicly responded to the allegations.
Blum Issues Statement, Cuts Ties with Co-Founder
Shortly after news of the arrest broke, Blum released a statement on X. The team confirmed that Smerkis had officially resigned from his position as chief marketing officer and would no longer be involved in any capacity.
Blum stated that its operations would continue as planned. The project, which operates on Telegram Mini Apps, allows users to trade digital assets, earn rewards, and participate in token airdrops.
BLUM Airdrop Uncertainty Sparks Community Frustration
Despite reassurances from the Blum team, Smerkis’ arrest has triggered growing concern among users regarding the platform’s planned BLUM token airdrop. The airdrop was expected to launch in Q3 2025. In anticipation, users have been accumulating points via the platform’s “Drop Game.”
Related: 11 Key Executives Leave Binance in 9 Months, What’s Truly Happening?
Now, some users worry that the airdrop may be delayed or canceled altogether. Influencers have also voiced frustration about the team’s lack of communication since the arrest.
“No airdrop. No updates. Just silence,” crypto influencer RK Gupta wrote on X. “Was it all for nothing?”
Notably, Smerkis was among the high-level executive departures from Binance in 2023. Serving as the general manager for Russia and the Commonwealth of Independent States (CIS), Smerkis announced his resignation on September 6, 2023, the same day as two other senior executives.
His exit occurred during a turbulent period for Binance, marked by eleven executive resignations across multiple departments within just nine months. This exodus came amid growing regulatory pressures.
While the executives, including Smerkis, publicly framed their departures as routine and amicable, the timing fueled speculation about internal challenges at the world’s largest crypto exchange.
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