Blum Co-Founder Vladimir Smerkis Arrested in Moscow on Fraud Allegations
Vladimir Smerkis, a co-founder of the telegram-based crypto project Blum, has been arrested in Moscow, Russia, on fraud allegations.Blum has confirmed that Smerkis is no longer affiliated with the project.
Details of the Arrest
The Zamoskvoretsky District Court of Moscow approved a request from investigators to keep Smerkis in custody during the investigation, according to Russian state-owned news outlet TASS on may 18.
Smerkis, who previously managed operations for Binance in Russia, is suspected of committing fraud on a “large scale,” which falls under Article 159 of the Criminal Code of the Russian Federation. Violations of this article can result in imprisonment ranging from two to 12 years.
It remains unclear whether formal charges have been filed against Smerkis.
Allegations Stemming from Past Ventures
Russian news outlet Mash has linked the fraud allegations against Smerkis to his involvement in The Token Fund and Tokenbox crypto ventures, which he co-founded in 2017. Investors in these ventures reportedly suffered combined losses of around $15 million.
Blum’s response
Blum, which is not involved in The Token Fund and Tokenbox ventures, announced on X on May 18 that Smerkis had resigned from his role as the firm’s chief marketing officer and would no longer be involved in the project in any capacity.
Blum stated that its team remains fully committed and focused on its goals and that its day-to-day operations would continue as usual.
Did you know? Blum integrates a decentralized exchange into Telegram Mini Apps, allowing users to trade crypto, earn rewards, and participate in token airdrops.
Concerns Over BLUM Token Airdrop
The arrest has raised concerns about whether Blum’s planned token airdrop will proceed as scheduled.
In an April 3 post on X, Blum hinted at a potential BLUM token listing in the third quarter of this year.
Blum users could receive BLUM tokens by earning Blum points in its newly launched Drop Game, where users tap on snowflakes falling from their mobile phone screen, and convert those points into tokens during the project’s slated token generation event.
Pro Tip: Always do your own research (DYOR) before participating in any crypto airdrops or token generation events. Verify the legitimacy of the project and understand the risks involved.
Community Reaction
news of Smerkis’ arrest appears to have shaken community confidence in the BLUM token airdrop.
One X user and Blum community member stated, Blum owes its users a clarification on the planned airdrop.
Crypto influencer RK Gupta added:
No airdrop. No updates. Just silence. Was it all for nothing?
RK Gupta,Crypto Influencer
