Key Takeaways
- Blum said he had resigned as Chief Marketing Officer and no longer held any founding or development role within the organization
- Blum’s team issued an additional statement thanking Smerkis for his contributions and assuring users that the project’s operations remain unaffected.
Vladimir Smerkis, a former Binance regional executive and co-founder of crypto tap-to-earn app Blum, has been formally detained by Russian authorities on suspicion of large-scale fraud, according to a ruling issued by the Zamoskvoretsky District Court.
As per local media reports, the arrest was granted following a request from state investigators, who have opened a criminal case under Article 159 of the Russian Criminal Code, which addresses fraud-related offenses. Officials have not disclosed the specific allegations at this stage.
Smerkis, who previously served as general manager for Binance operations across Russia and the Commonwealth of Independent States (CIS), was taken into custody on Friday.
In a post shared on X , Blum distanced itself from Smerkis. The company said he had resigned as Chief Marketing Officer and no longer held any founding or development role within the organization. “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 company wrote.
Blum’s team issued an additional statement thanking Smerkis for his contributions and assuring users that the project’s operations remain unaffected.
Blum, which functions as a tap-to-earn mini-app built into Telegram, blends crypto earning mechanics with decentralized exchange features. The company gained traction amid a broader surge in tap-to-earn games, particularly following the success of Hamster Kombat in 2024, which reportedly executed the largest token airdrop in crypto history.
The circumstances surrounding Smerkis’ arrest have sparked discussion in Russian crypto and legal circles. While authorities have confirmed the investigation falls under fraud legislation, details of the alleged misconduct have yet to be made public.
Smerkis has not issued a statement or commented on the allegations.
Court approval of the arrest indicates that prosecutors have presented preliminary evidence sufficient to justify pre-trial detention. It remains unclear whether the charges are connected to his previous roles at Binance, Blum, or other ventures.
Russian law allows suspects held under Article 159 to face substantial penalties, particularly in cases involving “especially large” sums.
