A major shakeup hit the Telegram crypto world this week. Vladimir Smerkis, co-founder of the Blum crypto project and former Binance Russia head, was arrested in Moscow on serious fraud charges. This has left the Telegram community reeling.
The Arrest and Charges
Smerkis is facing charges under Article 159 of the Russian Criminal Code, which deals with large-scale fraud. A Moscow court ordered him held in custody, suggesting investigators have strong evidence against him, although formal charges haven’t been publicly released yet. A conviction could land him in prison for 2 to 12 years.
Past Projects Under Scrutiny
The investigation isn’t just about Blum. Authorities are looking into two other crypto firms Smerkis co-founded in 2017, The Token Fund and Tokenbox. Investors in these projects reportedly lost around $15 million, and investigators are exploring a possible connection to the current charges. His past role at Binance Russia is also adding fuel to the fire.
Blum’s Future in Question
Blum’s plans included a big token launch (airdrop) later this year. Users earn points through a game and can exchange them for tokens. This all happens within a Telegram Mini App. With Smerkis’ arrest, many are worried the airdrop might be delayed or canceled.
Damage Control
Blum’s team has publicly stated that Smerkis has resigned and is no longer involved. They claim daily operations will continue as normal, and they’re still committed to the token launch. However, they haven’t revealed who will take over his responsibilities, leaving some users skeptical.
The Bigger Picture
The Blum project itself might be sound, but the crypto world runs on trust. How Blum handles this crisis—especially in terms of transparency and governance—will determine whether it survives or becomes a cautionary tale for other Telegram-based projects.
