Telegram Crypto Co-Founder Cuffed as $15M Vaporizes in Alleged Scam

Another day, another crypto ’visionary’ in handcuffs. The co-founder of a Telegram-linked crypto project got busted for what authorities claim was a brazen $15 million fraud—just as retail investors were starting to believe the ’next bull run’ hype.

Details remain murky, but sources suggest classic web3 theater: flashy promises, suspicious wallet movements, and the inevitable rug-pull. The project’s token? Down 98%. The team’s credibility? Even lower.

Yet somewhere in Monaco, a VC who ’diligently’ invested in this project is still sipping champagne. Crypto never changes—only the mugshots do.

Court Grants Custody Request

According to TASS, on May 18 the Zamoskvoretsky District Court approved a request to keep Smerkis in custody. He’s suspected of “large‑scale” fraud, which under Article 159 carries a sentence from 2 to 12 years in prison.

Detention at this early stage usually means investigators believe they have firm evidence, though formal charges haven’t been made public.

Scrutiny Of Past Ventures

Based on reports from Mash, the probe reaches back to two crypto firms Smerkis co‑founded in 2017: The Token Fund and Tokenbox. Investors in those ventures reportedly lost roughly $15 million combined.

Now, authorities are revisiting those losses to see if they tie into this case. His background running Binance in Russia has only added to the attention on his activities.

Blum’s roadmap had promised a BLUM token listing in the third quarter. Users earn points in its Drop Game—tapping falling snowflakes on their phone screens—and convert them to tokens during a token generation event.

All of that happens inside Telegram Mini Apps, where trading, rewards and airdrops are integrated. After the May 18 news, many in the community are now unsure the airdrop will happen on schedule.

According to a statement on X, Blum confirmed Smerkis has resigned as chief marketing officer and will have no further role. The team says daily operations will carry on as usual and that focus remains on delivering the token event. Still, details on who now oversees marketing and airdrop logistics are scarce, leaving some users uneasy.

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

The code behind the Telegram Mini App may be solid—but in crypto, trust in people matters just as much. How Blum handles transparency and governance now will determine if it recovers its momentum or becomes a cautionary tale for other Telegram‑based projects.

Featured image from TechNext, chart from TradingView