$15M Gone? Telegram Crypto Project’s Co-Founder Arrested For Alleged Fraud

A co‑founder of Blum, a crypto project built into Telegram Mini Apps, was arrested this week in Moscow on fraud charges. Vladimir Smerkis, who once ran Binance’s operations in Russia, now faces an investigation under Article 159 of the Russian Criminal Code. His detention has sent shockwaves through the Telegram‑based platform’s community.

Court Grants Custody Request

According to TASS, on May 18 the Zamoskvoretsky District Court approved a request to keep Smerkis in custody. He’s suspected of “large‑scale” fraud, which under Article 159 carries a sentence from 2 to 12 years in prison.

Detention at this early stage usually means investigators believe they have firm evidence, though formal charges haven’t been made public.

Scrutiny Of Past Ventures

Based on reports from Mash, the probe reaches back to two crypto firms Smerkis co‑founded in 2017: The Token Fund and Tokenbox. Investors in those ventures reportedly lost roughly $15 million combined.

Now, authorities are revisiting those losses to see if they tie into this case. His background running Binance in Russia has only added to the attention on his activities.

Blum’s roadmap had promised a BLUM token listing in the third quarter. Users earn points in its Drop Game—tapping falling snowflakes on their phone screens—and convert them to tokens during a token generation event.

All of that happens inside Telegram Mini Apps, where trading, rewards and airdrops are integrated. After the May 18 news, many in the community are now unsure the airdrop will happen on schedule.

According to a statement on X, Blum confirmed Smerkis has resigned as chief marketing officer and will have no further role. The team says daily operations will carry on as usual and that focus remains on delivering the token event. Still, details on who now oversees marketing and airdrop logistics are scarce, leaving some users uneasy.

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.

— Blum (@blumcrypto) May 17, 2025

The code behind the Telegram Mini App may be solid—but in crypto, trust in people matters just as much. How Blum handles transparency and governance now will determine if it recovers its momentum or becomes a cautionary tale for other Telegram‑based projects.

Featured image from TechNext, chart from TradingView