Crypto Executive and Former Binance Russia Head Detained Amid Investigation Into $15M Alleged Loss
Vladimir Smerkis, co-founder of the Telegram-integrated crypto project Blum and former head of Binance Russia, has been arrested in Moscow on allegations of large-scale fraud, according to a May 18 report by Russian state media outlet TASS.
The Zamoskvoretsky District Court approved investigators’ request to detain Smerkis while a formal investigation proceeds under Article 159 of the Russian Criminal Code, which covers large-scale fraud and carries a potential sentence of 2 to 12 years in prison.
It remains unclear whether formal charges have yet been filed.
Alleged Fraud Tied to Earlier Ventures
Russian news outlet Mash linked the allegations to The Token Fund and Tokenbox, two crypto ventures co-founded by Smerkis in 2017. Investors reportedly lost a combined $15 million, prompting legal scrutiny of Smerkis’ role in those projects.
While Blum is not affiliated with those ventures, the project has confirmed Smerkis is no longer involved in any capacity. On May 18, Blum announced on X that he had resigned as Chief Marketing Officer and would play “no further role” in the company.
“The team remains focused and committed to delivering on our roadmap,” the project stated, adding that daily operations will continue as planned.
We would like to inform our community that Vladimir Smerkis has stepped down from his role as CMO and is no longer involved in the development of the project or in any co-founder capacity.
— Blum (@blumcrypto) May 17, 2025
Community Doubts Rise Over BLUM Token Airdrop
The news has spooked Blum community members, many of whom were anticipating the BLUM token airdrop following the success of its Telegram-based Drop Game, which allows users to tap on falling snowflakes to earn “Blum Points” redeemable for tokens.
In an April 3 post, Blum teased a potential token generation event (TGE) and listing in Q3 2025. However, Smerkis’ arrest has cast doubt on whether the token airdrop will go forward.
“No airdrop. No updates. Just silence. Was it all for nothing?” asked crypto influencer RK Gupta on X.
“Blum owes its users a clarification on the planned airdrop,” another user wrote, reflecting the growing unease in the project’s community.
About Blum
Blum is a Telegram-native decentralized exchange (DEX) built using Telegram Mini Apps, aiming to simplify crypto trading through a familiar messaging interface. The app allows users to trade tokens, earn rewards, and participate in airdrops directly within Telegram.
The project’s gamified onboarding — including its popular Drop Game — helped Blum gain rapid traction among crypto newcomers and airdrop hunters alike.
Final Thoughts: Arrest Raises Red Flags for Telegram-Based Crypto Projects
While Smerkis’ arrest may be tied to past business activities, the fallout threatens to undermine community trust in Blum’s current roadmap, particularly its plans to launch the BLUM token.
As Telegram-based crypto apps grow in popularity, this incident serves as a stark reminder of the importance of transparency, clear communication, and leadership accountability in early-stage Web3 projects.
Blum has yet to issue further clarification on the fate of the airdrop, leaving thousands of users wondering whether their time in the Drop Game will ever translate into tangible rewards.
