- Vladimir Smerkis was detained in Moscow for alleged fraud tied to past crypto ventures.
- Blum users are unsure if their earned points will convert into tokens as originally planned.
- The team says daily operations continue, but has not confirmed updates on the airdrop.
Vladimir Smerkis, co-founder of the Telegram-based crypto app Blum, has been arrested in Russia for alleged large-scale fraud. According to sources, the Zamoskvoretsky District Court in Moscow ordered his detention on Friday under charges of “fraud on an especially large scale.” Police have yet to disclose the full list of charges or whether they directly involve the Blum project or other past ventures.
Smerkis, a known figure in the crypto industry, formerly led Binance’s operations in Russia and the Commonwealth of Independent States (CIS). His name was also tied to The Token Fund and Tokenbox, two early crypto investment platforms that raised millions but eventually vanished from public focus. Several Russian media outlets speculate that the fraud allegations may be linked to these earlier projects rather than Blum.
Project Distances Itself Amid Mounting Concerns
Soon after the arrest, Blum moved swiftly to distance the project from Smerkis. In a public statement posted on X, Blum stated: “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.”
Despite the reassurances, concerns have been rising among Blum users. Previously, the app stated it would convert “Blum Points” into tokens in Q2 of 2025. These points were earned during the May 2024 “Drop Game,” where players tapped on falling snowflakes to collect digital rewards.
Airdrop Uncertainty Sparks User Doubts
Blum’s airdrop remains a central concern for its community, especially after repeated delays and unclear timelines. The Drop Game officially ended on May 14, 2024, and was expected to lead into an ongoing “seasonal” airdrop model. However, with Smerkis’s exit and legal troubles, many users are now questioning the viability of that promise.
Significantly, the project had previously gained credibility by being part of Binance Labs’ Most Valuable Builder accelerator program. That early association had positioned Blum as one of the most promising tap-to-earn initiatives in the post-Hamster Kombat era. But the arrest now threatens to damage user trust just as tap-to-earn platforms are gaining mainstream attention.
Related: Crypto Influencer Ben Armstrong Gets Arrested After Dispute
Past Ventures Add to Legal Pressure
Although authorities have not officially named Tokenbox or The Token Fund in the case, media reports suggest they are under review. Each company attracted investors during the first period of initial coin offerings, but then they slowly became forgotten. There are now rumors that some founders may walk away from their projects after gathering much money from investors.
Following a string of recent crackdowns involving crypto executives in Russia, the arrest aligns with broader enforcement trends. Still, it remains unknown whether Smerkis’s charges are tied directly to criminal activity during his tenure at Blum or relate strictly to his previous endeavors. Neither Binance nor Binance Labs has issued a statement regarding the matter at the time of writing.
