Vladimir Smerkis, a former executive at Binance and co-founder of the Telegram-based crypto project Blum, has been detained in Moscow on suspicion of large-scale fraud.
Russian outlet TASS reported on 18 May that the Zamoskvoretsky District Court approved a request to keep Smerkis in custody while an investigation is underway.
He is reportedly being held under Article 159 of the Russian Criminal Code, which covers fraud offences and carries a potential prison sentence of two to 12 years.
While no formal charges have been confirmed, local media, including Mash, suggest the case centres around earlier ventures—The Token Fund and Tokenbox—co-founded by Smerkis in 2017.
Both investment platforms have since become inactive, with investors allegedly losing around $15 million combined.
Blum has publicly stated it was never connected to either project.
Shortly after the news broke, Blum issued a statement via its official X account distancing itself from Smerkis.
“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.”
The project added in a separate post,
“Our team remains fully committed and focused on our goals, and day-to-day operations continue as usual.”
The team acknowledged Smerkis’ past contributions, saying,
“We thank Vladimir for his contribution to the project and wish him the best in his future endeavours.”
The arrest has sparked community concerns over the status of Blum’s highly anticipated airdrop.
Blum rose to popularity through its Drop Game—a tap-to-earn mini app where users collect falling snowflakes to earn Blum Points.
These points were promised to convert into BLUM tokens during a future token generation event.
Originally launched in May 2024, the Drop Game wrapped up on 14 May after running for multiple airdrop “seasons.”
Despite hints from Blum about a potential token listing in the third quarter of 2025, some users now question whether the project will deliver.
Crypto influencer RK Gupta posted,
“No airdrop. No updates. Just silence. Was it all for nothing?”
Crypto trader Ah Med expressed,
“The team is pushing a second season without delivering the Season 1 airdrop.
We’ve been grinding in this bot for 245+ days, spending time and money — the least we deserve is the reward before they decide to extend the timeline again.”
Another user wrote,
“Blum owes its users a clarification on the planned airdrop.”
Blum is one of several projects riding the wave of tap-to-earn crypto games, a trend fuelled by the viral success of Hamster Kombat in 2024.
That game led the way with one of the largest token airdrops in the industry.
Blum followed closely, growing a Telegram-based user base of millions.
The sector as a whole now holds a market cap of $511 million, according to CoinGecko.
Blum was previously supported by Binance Labs through its Most Valuable Builder accelerator programme.
The timing of Smerkis' arrest has cast a shadow over the project’s momentum, though its remaining team insists they are pressing ahead.
Jim Cramer's optimistic forecast and growing market anticipation signal potential for Ethereum ETFs, mirroring the impact of Bitcoin ETFs. With upgrades like Cancun and Shapella enhancing Ethereum's capabilities, surpassing previous all-time highs seems within reach, possibly by the third quarter.
AnaisBinance's new listing of Portal's gaming token sparked excitement, leading to a surge in market cap to $425 million. Portal offers cross-chain gaming, allowing easy access to various games and assets, with plans for token staking benefits and further expansion.
JoyHong Kong's Securities and Futures Commission has stopped accepting crypto exchange license applications, with non-compliant exchanges facing closure by 31 May 2024. Licensed operators include OSL Digital Securities and HashKey Exchange, while notable applicants like Bybit and OKX seek approval, though platforms like Coinbase and Kraken are absent.
AnaisOpenAI won a legal battle against Open Artificial Intelligence over the "Open AI" trademark, with a court injunction prohibiting the latter's use of the term. The ruling highlights the importance of protecting intellectual property in the AI industry and raises questions about branding strategies for both companies.
JoyElon Musk has filed a lawsuit against OpenAI, accusing the company of abandoning its open-source mission in favor of profit-driven collaboration with Microsoft. The lawsuit seeks to compel OpenAI to return to its original open-source model and ensure transparency in the development of artificial general intelligence (AGI).
WeatherlyNigeria seeks $10 billion from Binance for alleged illegal transactions, contributing to Naira's fall and economic strain, as the country tightens grip on cryptocurrency exchanges.
AlexBitcoin's price surged to $64,000, influenced by U.S. government wallet transfers and strong demand from newly launched U.S. Bitcoin spot ETFs, signaling a historic bull market.
MiyukiAuckland-based MACSO, funded by US investors, collaborates with Piera Systems to tackle underage vaping using innovative AI technology. Their advanced solution detects vape and cigarette smoke particles accurately, aiming to create safer environments for students globally.
AnaisWorldcoin's trajectory is buoyed by AI hype but faces challenges from token unlocks and utility questions.
AlexMiyuki