Russian Authorities Arrest Vladimir Smerkis, Co-Founder of Telegram-Based Crypto Platform Blum, on Fraud Charges

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.

Russian authorities have arrested Vladimir Smerkis, a co-founder of the Telegram-based crypto platform Blum, on fraud charges. A Moscow court swiftly approved his detention as investigations continue. The case reportedly ties into 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 pertains to large-scale fraud. Upon conviction, he faces a sentence ranging from 2 to 12 years.

The charges are related to past projects, including The Token Fund and Tokenbox, two crypto investment ventures. Russian outlet Mas reported that these platforms collectively resulted in an estimated $15 million in losses for investors.

Smerkis, who previously held a leadership position at Binance in Russia, has not yet made any public statements regarding the allegations.

Blum Issues Statement, Severs Ties with Co-Founder

Shortly after news of the arrest broke, Blum issued 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 with the project.

Blum stated that its operations would continue as planned. The project, which is powered by Telegram Mini Apps, enables 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 sparked growing concern among users about the platform’s planned BLUM token airdrop. The airdrop was initially set to launch in Q3 2025. In anticipation, users have been diligently accumulating points via the platform’s “Drop Game.”

However, some users now fear that the airdrop may be delayed or canceled entirely. Influencers have also expressed frustration at the lack of communication from the team since the news broke.

“No airdrop. No updates. Just silence. Was it all for nothing?” crypto influencer RK Gupta wrote on X.

Smerkis’ departure from Binance follows a series of high-level executive exits from the crypto exchange 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 came during a turbulent period for Binance, marked by eleven executive resignations across multiple departments within just nine months 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.