Ex-Binance Executive and Blum Co-Founder Vladimir Smerkis Arrested for Alleged Crypto Fraud

• Vladimir Smerkis was arrested in Moscow for alleged large-scale fraud tied to past projects.
• Blum says operations will continue without disruption.
• Uncertainty grows around the planned BLUM token airdrop amid community backlash.

Russian authorities arrested Vladimir Smerkis, a co-founder of the Telegram-based crypto platform Blum, on fraud charges. A Moscow court quickly approved his detention as investigations are ongoing. The case reportedly connects to earlier projects that allegedly defrauded investors of $15 million.

Smerkis Detained Under Russia’s Criminal Code

Yesterday, May 18, the Russian state news agency TASS confirmed that Vladimir Smerkis was taken into custody in Moscow. According to a report, he is being investigated under Article 159 of Russia’s Criminal Code, which deals with large-scale fraud. If found guilty, he faces a sentence ranging from 2 to 12 years.

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The charges stem from past projects, including The Token Fund and Tokenbox, two crypto investment ventures. Russian outlet Mas reported that these platforms collectively led to approximately $15 million in inves…

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