Blum Co-Founder Arrested in Russia for $15M Fraud: Is the Telegram Airdrop Still Happening?

Former Binance Exec Held Over $15M Crypto Fraud Allegations As Blum Project Cuts Ties

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.

Arrest Linked To Previous Ventures, Not Blum

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.

Blum Says Smerkis No Longer Involved

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.”

Is The Airdrop At Risk?

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.”

Tap-To-Earn Market Faces Scrutiny

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.