Blum Co-Founder Arrested in Russia Amid Fraud Allegations

Vladimir Smerkis, the co-founder of Blum, a popular Telegram Mini App that combines a crypto exchange with point-earning games, has been detained in Russia on accusations of large-scale fraud. The arrest was carried out by the Zamoskvoretsky District Court of Moscow, with police stating that Smerkis was taken into custody as part of a criminal case involving fraud on an especially large scale. The official charges have yet to be revealed, but some reports suggest that the arrest could be related to prior projects Smerkis led, including The Token Fund and Tokenbox, which raised millions but have since faded into obscurity.

Following the arrest, Blum quickly distanced itself from Smerkis. The project announced on its X account that Smerkis had stepped down from his role as Chief Marketing Officer (CMO) and was no longer involved in the development of the project or in any co-founder capacity. Blum, which was supported early on by Binance Labs through its Most Valuable Builder accelerator program, launched its "Drop Game" in May 2024. This game allows users to farm "Blum Points" by tapping snowflakes falling down their phone's screen, with the promise of an eventual airdrop to turn Blum Points into tokens. However, after delays and the launch of additional airdrop "seasons," users are still waiting for the token-generation event.

The Drop Game recently closed on May 14, as Blum has increasingly teased its airdrop, currently slated for sometime in the second quarter of 2025. The arrest of Smerkis has raised concerns among users about whether the airdrop will actually take place. Blum has expressed gratitude for Smerkis' contributions and assured users that the team remains fully committed and focused on their goals, with day-to-day operations continuing as usual.

Smerkis' arrest comes at a critical time for Blum, as the project navigates the complexities of the crypto market. The impact of his arrest on the project's development and user trust remains to be seen. Blum's unique approach of combining gamified earning with a hybrid decentralized exchange (DEX) platform has made cryptocurrency accessible and engaging for both newcomers and experienced traders. However, the arrest of a key figure like Smerkis raises questions about the future leadership and stability of the project. The crypto community will be closely watching how Blum navigates this challenging situation and whether it can maintain its momentum in the competitive crypto market.