Friday, April 17th 2026

Blum Co-Founder Vladimir Smerkis Detained in Moscow Amid $15M Fraud Investigation


Blum Co-Founder Vladimir Smerkis Detained in Moscow Amid $15M Fraud Investigation
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Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum and former head of Binance Russia, has been arrested in Moscow on allegations of large-scale fraud. The Zamoskvoretsky District Court approved his detention on May 18, 2025, under Article 159 of the Russian Criminal Code, which pertains to fraud and carries a potential sentence of up to 12 years in prison .

 Allegations and Background

The fraud allegations are reportedly linked to two earlier cryptocurrency ventures co-founded by Smerkis in 2017: The Token Fund and Tokenbox. These projects collectively raised approximately $15 million from investors but subsequently collapsed, leaving many unable to recover their funds .

While Blum has stated that it is not connected to these previous ventures, the arrest has cast a shadow over the project. In a statement released on May 18, Blum announced that Smerkis had resigned from his role as Chief Marketing Officer and is no longer involved with the company in any capacity

Impact on Blum and Its Community

Blum, which integrates a decentralized exchange into Telegram Mini Apps, allowing users to trade cryptocurrencies, earn rewards, and participate in token airdrops, is now facing increased scrutiny. The community has expressed concerns over the planned BLUM token airdrop, initially scheduled for the third quarter of 2025. Users who participated in Blum's Drop Game, accumulating points with the expectation of converting them into tokens, are now uncertain about the airdrop's future .

The arrest of Vladimir Smerkis underscores the importance of due diligence in the rapidly evolving cryptocurrency landscape. As the legal proceedings unfold, stakeholders and users of Blum will be closely monitoring developments to assess the project's viability and the security of their investments.

 

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