Blum Crypto Founder Nabbed in Moscow—Fraud Case Rocks Telegram Trading Scene

Vladimir Smerkis, co-founder of Blum—the Telegram-based crypto trading platform—was arrested in Moscow on fraud charges. Details remain scarce, but the timing couldn’t be worse for retail investors already nursing losses from last week’s market dip.

Blum’s BNB-backed token had been a rare bright spot in the recent crypto winter. Now? Another ‘trustless’ system proving the only thing decentralized is accountability.

Moscow’s financial crimes unit hasn’t released specifics, but insider whispers suggest Smerkis may have pulled a classic exit scam—just with extra steps. The Blum team’s official Telegram channel has gone radio silent since the arrest.

For a project that promised to ‘democratize trading,’ this smells suspiciously like oligarch-era theatrics. Maybe next time, stick to the whitepaper buzzwords and skip the handcuffs.

• Vladimir Smerkis arrested in Moscow on large-scale fraud charges.
• Blum announces Smerkis stepped down amid legal investigation.
• Users question Airdrop’s future after Smerkis’s arrest.

On Friday, Vladimir Smerkis, the co-founder of the popular Telegram Mini App Blum, was arrested in Moscow for fraud. The arrest took place at the Zamoskvoretsky District Court, although the details about the charges remain unclear. Initially, Smerkis supervised Binance’s operations in Russia and the CIS region.

Blum quickly distanced itself from the co-founder and announced that Smerkis had stepped down as Chief Marketing Officer. The firm assured users that the arrest WOULD not affect the planned airdrop. Blum reiterated its commitment to maintain its normal day-to-day operations. 

Smerkis Arrest Raises Doubt About Planned Airdrop

Users of Blum’s platform are concerned about the planned token-generation event due to the arrest. The platform also announced an airdrop, which would let players convert their in-game points into tokens. 

Blum had announced an airdrop in the second quarter of 2025. However, the arrest of its co-founder has raised questions on whether the event will take place as scheduled. As of now, the platform has not indicated any changes to its timeline or plans.

Crypto Exec’s Fraud Cases

Smerkis’s arrest comes after several cases that involve crypto executives and fraud cases. Authorities have not specified whether the charges are related to Blum or Smerkis’s previous ventures, such as The Token Fund and Tokenbox. These crypto projects disappeared from the public after raising millions of dollars, which raises speculation about a possible exit scam. 

There has been increased attention on tap-to-earn platforms across the world, and Blum is one of the leading projects. The tap-to-earn platforms enable users to acquire digital tokens for easy activities. The popularity of Hamster Kombat in 2024 has attracted many people’s interest in crypto gaming.

High Profile Fraud Cases Disrupt User Trust

However, the involvement of crypto executives in fraud cases has diminished investors’s confidence. Vladimir Smerkis’ arrest is similar to that of Alexander Mashinsky, the former CEO of Celsius Network. Mashinsky was found guilty of several fraud charges and sentenced to 12 years in prison. This shows the risks faced by crypto companies and their leaders.

Blum has told its 5.3 million followers that its development will not be affected. The platform remains committed to combining gaming with the crypto space. Users are still unsure if the airdrop will happen as expected.

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