19-5-2025 – Vladimir Smerkis, once a prominent Binance executive and co-founder of the Telegram-based cryptocurrency venture Blum, finds himself in a Moscow detention cell, accused of orchestrating large-scale fraud. On 18 May, the Zamoskvoretsky District Court sanctioned his custody pending a thorough investigation, as reported by Russian news agency TASS. Smerkis faces allegations under Article 159 of the Russian Criminal Code, a statute addressing fraud that could lead to a prison term spanning two to twelve years.
The accusations appear rooted not in Blum but in Smerkis’ earlier enterprises, The Token Fund and Tokenbox, both launched in 2017. These now-defunct investment platforms allegedly left investors out of pocket to the tune of $15 million, according to local media outlet Mash. While formal charges remain pending, the shadow of these ventures looms large over Smerkis’ detention.
Blum, keen to distance itself from the controversy, swiftly issued a statement via its official X account. The project clarified that Smerkis had relinquished his role as Chief Marketing Officer and severed all ties as a co-founder. “Our team remains steadfast, fully dedicated to our objectives, with operations proceeding seamlessly,” Blum asserted in a follow-up post, expressing gratitude for Smerkis’ past contributions while wishing him well. The project emphatically denied any connection to The Token Fund or Tokenbox, seeking to reassure its community of millions.
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
Smerkis’ arrest has sent ripples of unease through Blum’s user base, particularly concerning the fate of its much-hyped airdrop. Blum, a star in the tap-to-earn crypto gaming scene, captivated users with its Drop Game, a Telegram mini-app launched in May 2024. Players amassed Blum Points by collecting virtual snowflakes, with the promise of converting these into BLUM tokens during a future token generation event. The game, which concluded on 14 May after multiple “seasons,” had hinted at a token listing in Q3 2025. Yet, Smerkis’ detention has fuelled doubts. Crypto influencer RK Gupta voiced frustration on X, lamenting, “No airdrop, no updates—just silence. Was it all for nothing?” Trader Ah Med echoed the sentiment, decrying the team’s push for a second season without delivering the first airdrop’s rewards. “After 245 days of grinding, we deserve clarity,” he wrote.
The tap-to-earn sector, buoyed by the meteoric rise of games like Hamster Kombat in 2024, has grown into a $511 million market, per CoinGecko data. Blum, backed by Binance Labs’ Most Valuable Builder programme, had been a frontrunner, amassing a vast Telegram following. However, Smerkis’ legal troubles threaten to dim its lustre, even as the remaining team vows to forge ahead. The unfolding saga underscores the volatility of the crypto landscape, where ambition and uncertainty often collide.
