Blum co-founder, ex-Binance exec Vladimir Smerkis arrested in Moscow on fraud charges

The co-founder of Blum, a popular Telegram Mini App that combines a crypto exchange with point-earning games, has been detained in Russia on accusations of large-scale fraud, according to local media reports. 

Vladimir Smerkis, who previously worked as the general manager for Binance's operations in Russia and the CIS region, was arrested on Friday Zamoskvoretsky District Court of Moscow, according to local media site TASS . Police told TASS Smerkis was arrested "...as part of a criminal case on fraud on an especially large scale," though the official charges have yet to be revealed. 

Some reports suggest the arrest could be related to prior projects Smerkis led, including The Token Fund and Tokenbox, which raised millions but have since faded into obscurity . 

Following the arrest, Blum was quick to put distance between the project and Smerkis. Blum's X account announced on Saturday that 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, which was supported early on by Binance Labs through its Most Valuable Builder accelerator program, launched its "Drop Game" in May, 2024, which lets users farm "Blum Points" by tapping snowflakes falling down their phone's screen. The project promised an eventual airdrop to turn Blum Points into tokens; yet, after delays and the launch of additional airdrop "seasons," users are still waiting for the token-generation event. 

The Drop Game recently closed on May 14 as Blum has increasingly teased its airdrop, currently slated for sometime in 2025's second quarter. Yet the arrest of Smerkis has some users expressing concerns over whether the airdrop will actually take place. 

"We thank Vladimir for his contribution to the project and wish him the best in his future endeavors," Blum said on X. "Our team remains fully committed and focused on our goals, and day-to-day operations continue as usual."