Blum Co-Founder Arrested Over Fraud – What It Means for the Project
Vladimir Smerkis, the co-founder of the crypto project Blum and former head of Binance’s CIS division, has been arrested in Moscow. Russian news outlet TASS said he is suspected of being involved in a big fraud case. The court has decided to keep him in jail while the police continue their investigation. He could face 2 to 12 years in prison if found guilty.
Not About Blum, But Still a Big Deal
Smerkis hasn’t been officially charged yet, but the case is linked to his old companies called The Token Fund and Tokenbox, not Blum. Even so, his arrest has surprised the crypto world and worried Blum’s 5.3 million users, who are waiting for a token giveaway (airdrop).
The two companies he started in 2017 are said to have caused investors to lose about $15 million. Some people think it might have been a scam where the founders took the money and disappeared.
What Were These Companies?
The Token Fund claimed to be a crypto investment fund.
Tokenbox aimed to help people create and invest in token projects.
Both became popular during the 2017 crypto boom but later failed, with users complaining of bad management and broken promises. At that time, Smerkis was also working with Binance, which made people trust him more.
Blum Says Smerkis Is No Longer Involved
After the arrest, Blum quickly announced that Smerkis has quit and is no longer part of the team. On May 18, Blum posted on X (formerly Twitter) that he stepped down as Chief Marketing Officer and has no role in the project anymore.
Blum also said the project is still running as planned. They are working on a decentralised exchange and games that give users rewards.
The Airdrop Everyone Is Waiting For
Blum’s main attraction is the BLUM token airdrop. Since it began, people have been excited about getting free tokens through the Drop Game, a mobile game where users tap falling snowflakes to earn Blum Points. These points will later be changed into tokens.
The game became very popular in 2024, especially after the success of Notcoin. Blum even got support from Binance Labs, which helped boost trust in the project.
But There Are Problems
The Drop Game ended earlier than expected on May 14, 2025.
The airdrop, which was supposed to happen in the second quarter of 2025, has been delayed.
Blum started new “seasons” of the game to keep users busy, but many people are now frustrated by the lack of updates.
Some users on X are asking for answers. One wrote, “No airdrop. No updates. Just silence. Was it all for nothing?” Others are demanding that Blum explain what’s happening.
What’s Next for Blum?
The community is now divided. Some users think the project is in trouble because of Smerkis’ arrest. Others still believe in it because the team is active and backed by Binance Labs.
Blum plans to restart the Drop Game, but some see it as a trick to avoid talking about the delayed airdrop.
Smerkis’ arrest comes at a difficult time, not just for Blum, but for the whole tap-to-earn trend. Other big names in crypto, like Alexander Mashinsky of Celsius Network, have also been arrested recently, which is making people more careful.
Experts say that being honest and clear with users will be very important for Blum. If the project can explain things well and deliver the airdrop, it might still succeed.
Blum told users: “We are committed to giving a safe and fun experience.” But to win back trust, the team needs to share real progress and keep their promises. The success of the project depends on what they do next.
