Blum Co-Founder Arrested in Russia as Project Distances Itself from Scandal

Vladimir Smerkis, a key figure behind the crypto-powered Telegram Mini App Blum, has been arrested in Moscow amid allegations of large-scale fraud, according to Russian media reports.

The arrest took place at the Zamoskvoretsky District Court, with police confirming the case involves financial misconduct “on an especially large scale.” While official charges remain undisclosed, speculation points to Smerkis’s earlier ventures — including The Token Fund and Tokenbox — which attracted millions in investment before fading from the spotlight.

Blum, which combines gamified crypto engagement with exchange services via Telegram, quickly issued a statement attempting to distance itself from Smerkis. In a post on X, the company said he had stepped down from his role as Chief Marketing Officer and was no longer involved in the project.

Launched in May 2024 with early backing from Binance Labs through its Most Valuable Builder program, Blum gained popularity through its “Drop Game,” where users collected points by tapping virtual snowflakes — with the promise of a future token airdrop. But repeated delays and the ongoing wait for a token-generation event have already sparked frustration among users. The latest developments have only fueled more skepticism.

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The Drop Game closed on May 14, and the team says its airdrop remains on track for the second quarter of 2025. However, the arrest has raised new doubts within the community about the project’s future.

In a follow-up post, Blum thanked Smerkis for his past contributions but reassured users that operations are continuing without disruption. “Our team remains fully committed,” the message read, “and focused on delivering the roadmap ahead.”

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.