Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum, was arrested in Moscow on May 17, 2025, on suspicion of large-scale fraud. His arrest followed a decision by the Zamoskvoretsky District Court, which approved investigators’ request to place Smerkis in pre-trial detention during the investigation.
Case Details
Charges: Smerkis is suspected of large-scale fraud under Article 159 of the Russian Criminal Code, a crime punishable by two to twelve years in prison.
Origin of Allegations: According to several Russian media outlets, the accusations are linked to his previous projects, The Token Fund and Tokenbox, which he co-founded in 2017. These platforms allegedly caused losses estimated at around $15 million for investors. Blum, Smerkis’ current project, is not involved in these allegations.
Status of Charges: It has not yet been confirmed whether formal charges have been filed against him.
Blum Project’s Response
Following the arrest, Blum announced publicly on May 18 that Smerkis had resigned from his position as Chief Marketing Officer and is no longer involved with the project, either as a co-founder or in any other capacity. The team assured that daily operations and project development would continue as usual despite the incident.
Blum, which boasts over 5 million users, is a crypto trading platform integrated into Telegram’s Mini Apps, enabling users to trade cryptocurrencies, earn rewards, and participate in token airdrops.
Uncertainty Around Airdrop and User Trust
Smerkis’ arrest has raised concerns within the community, especially regarding the highly anticipated BLUM token airdrop scheduled for Q3 2025. Despite management’s assurances, many users are questioning the project’s continuity and the distribution of promised tokens.
“No airdrop. No news. Just silence. Was it all for nothing?” – A crypto influencer summarizing the community’s frustration.
Background and Previous Controversies
Before Blum, Smerkis was a notable figure in the Russian crypto industry, having led Binance’s operations in Russia and the CIS. The current suspicions have revived criticisms of his past projects, with some media outlets even mentioning “exit scams” regarding The Token Fund and Tokenbox.
Vladimir Smerkis, co-founder of Blum, has been arrested for alleged fraud related to his previous crypto projects. His immediate resignation has raised concerns about Blum’s stability and future, though the team maintains that the project will continue to operate normally.
