Telegram-based Crypto Project Blum's Co-founder Vladimir Smerkis Arrested in Moscow on Suspicion of Fraud

Vladimir Smerkis, co-founder of Telegram-based crypto project Blum, has been arrested in Moscow on suspicion of large-scale fraud.

A co-founder of Telegram-based crypto project Blum, Vladimir Smerkis, has been arrested in Moscow on suspicion of large-scale fraud.

The Zamoskvoretsky District Court granted the request from state investigators to approve the detention of Smerkis, as reported by Russian news agency TASS on Sunday.

The charges against Smerkis are based on Article 159 of Russia’s criminal code, which pertains to serious fraud crimes. If found guilty, Smerkis could face up to 12 years in prison. Authorities have not yet confirmed whether formal charges have been filed.

Local media outlet Mash linked this case to previous crypto ventures started by Smerkis, namely ‘The Token Fund and Tokenbox’. Both platforms were launched in 2017. Together, those projects reportedly led to losses of around $15 million for investors.

Although Blum is not connected to these older ventures, the incident has brought the project into sharper focus. Notably, Smerkis also once led operations for Binance Russia.

In response, Blum posted on X that Smerkis has stepped down as its Chief Marketing Officer and is no longer part of the project. The company remains “fully committed” to its roadmap and will continue normal operations.

However, the timing of the arrest has caused anxiety among the Blum community. Many users are now raising concerns over the fate of the BLUM token airdrop, originally set for Q3 2025. The airdrop was to be linked to Blum’s gamified point system through its Telegram-based Drop Game.

“Blum owes its users a clarification on the planned airdrop,” one X user wrote. Several others expressed similar concerns, calling for transparency amid the uncertainty.