Russia has reportedly arrested Vladimir Smerkis, the co-founder of the Telegram-based crypto project Blum, on charges related to large-scale fraud. According to Russian state news agency TASS, Smerkis is currently in custody in Moscow as authorities investigate the allegations. Blum has confirmed that Smerkis is no longer affiliated with the project.
On May 18, the Zamoskvoretsky District Court of Moscow approved a request from investigators to keep Smerkis in custody during the investigation. He is suspected of committing large-scale fraud under Article 159 of the Russian Criminal Code, which carries a potential prison sentence ranging from two to twelve years. It remains unclear whether formal charges have yet been filed.
Russian news outlet Mash linked the fraud accusations to Smerkis’ involvement in The Token Fund and Tokenbox, two crypto ventures he co-founded in 2017. The report claimed investors in those projects suffered losses totaling around $15 million.
Blum, which clarified it is not connected to The Token Fund or Tokenbox, announced via X on May 18 that Smerkis had stepped down as the company’s chief marketing officer and would no longer be involved in the project. The firm emphasized its continued commitment to its goals and stated that day-to-day operations remain unaffected.
Blum is a crypto platform that integrates a decentralized exchange into Telegram Mini Apps, enabling users to trade digital assets, earn rewards, and participate in token airdrops.
The arrest has raised concerns among community members about the future of the project’s token launch. In an April 3 X post, Blum had hinted at a potential listing of the BLUM token in the third quarter of this year. Users could earn BLUM tokens by collecting points through its Drop Game — a mini-game where users tap falling snowflakes — and converting them during the project’s upcoming token generation event.
However, the news of Smerkis’ arrest appears to have shaken user confidence. One Blum community member posted on X, “Blum owes its users a clarification on the planned airdrop,” while crypto influencer RK Gupta added: “No airdrop. No updates. Just silence. Was it all for nothing?”
