The co-founder of Blum has been arrested: What does the future hold for the project?

Vladimir Smerkis – Co-founder of Blum Arrested

On May 18, Russian state news agency TASS reported that Vladimir Smerkis, co-founder of Blum—a platform integrating decentralized exchange (DEX) into Telegram Mini App—was arrested in Moscow on charges of large-scale fraud under Article 159 of the Russian Criminal Code. With this charge, Smerkis could face a sentence of 2 to 12 years in prison.

The Zamoskvoretsky District Court approved Smerkis’s detention during the investigation. Blum quickly issued a statement, asserting that Smerkis no longer held any role in the project and had resigned as Marketing Director. They emphasized that Blum continues to operate normally and remains committed to its mission. However, such reassurances have not alleviated the wave of panic within the community.

Allegations from the Past

According to the Russian news outlet Mash, the fraud charges against Smerkis are not directly related to Blum but stem from two old cryptocurrency projects he co-founded in 2017: The Token Fund and Tokenbox. Investors in these projects reportedly suffered losses amounting to $15 million—a significant figure during the early days of the crypto market.

Although Blum denies any connection to these projects, the involvement of a key figure like Smerkis in serious financial scandals has raised doubts about the transparency and reliability of the current project. The community cannot help but wonder: Is Blum really as “clean” as it claims?

Blum’s Repeated TGE Delays

Once a regional head for Binance in Russia, Smerkis came with high expectations when co-founding Blum—a project backed by Binance Labs through the Most Valuable Builder (MVB) program, aiming to lead the Web3 wave on Telegram.

The project had previously revealed plans to launch the BLUM token in Q3 2025, alongside the mini-game Drop Game, where players tap snowflakes to accumulate Blum Points—points promised to be converted into tokens during the token generation event (TGE). However, after multiple delays and the continuous rollout of new “airdrop seasons” without specific signs of the TGE, community trust began to wane. Many are skeptical about whether the BLUM token will actually materialize.

Related: The Tap-to-Earn Era Is Likely Over as Telegram Gaming Evolves

Community Outrage, Trust Eroded

Smerkis’s arrest has been the last straw, further undermining trust in Blum and the BLUM airdrop. On platform X, the community openly expressed their disappointment. One member exclaimed:

“Blum needs to publicly clarify the promised airdrop plan. We deserve to know the truth!”

Famous KOL RK Gupta did not hesitate to criticize:

“No airdrop, no updates, only silence. Is this all just a joke?”

The arrest of Vladimir Smerkis has plunged Blum into an unprecedented crisis of trust. While the project team attempts to distance itself from past scandals, the community demands more than empty promises. They want to see concrete actions, transparent information, and a clear roadmap.