Ex Binance Exec. and Blum Co-founder Arrested Amid Fraud Investigation

Vladimir Smerkis, once the general manager of Binance Russia and co-founder of the Telegram-based crypto project Blum, has been arrested in Moscow, per Russian state news agency TASS. His arrest was confirmed by the Zamoskvoretsky District Court, which approved his detention pending further investigation into allegations of fraud.

The charges remain vague. TASS reported that Smerkis is under investigation for “fraud on an especially large scale,” but officials have not revealed specific details about the case.

The arrest took place on a Friday, and police have not commented on whether the charges relate to his former tenure at Binance, his early projects like The Token Fund and Tokenbox, or his involvement with Blum. 

Before joining the crypto scene, Vladimir Smerkis served as the general manager for Binance’s operations in Russia and the broader Commonwealth of Independent States (CIS). His tenure ended before founding Blum, which was one of the early participants in Binance Labs’ Most Valuable Builder (MVB) accelerator program.

His other past ventures, like The Token Fund and Tokenbox, both attracted significant capital but eventually disappeared from the spotlight. Some industry insiders suspect the investigation may be revisiting those ventures, though there is no official confirmation.

Blum Quickly Distances Itself

Shortly after the news broke, Blum issued a statement on X (formerly Twitter) to its 5.3 million followers, stating that Smerkis no longer holds any formal role within the company.

“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 Blum team stated.

The clarification comes amid growing community anxiety, especially as the project is yet to deliver on its most anticipated promise — the conversion of Blum Points into tradeable tokens.

Tap-to-Earn Projects Under the Spotlight

Blum rose to fame as part of the tap-to-earn trend — a new wave of crypto games that reward users for simple actions like tapping their phone screens. These games have surged in popularity since the 2024 breakout success of Hamster Kombat, which hosted the largest token airdrop in the history of the crypto industry.

Blum's “Drop Game,” launched in May 2024, invited users to collect points by tapping on-screen snowflakes. The game promised that accumulated Blum Points could eventually be exchanged for tokens, fueling early excitement and a rapid user base expansion.

However, delays in the actual airdrop and the introduction of multiple “seasons” of point-farming have raised eyebrows. The Drop Game ended on May 14, 2025, yet the much-anticipated airdrop remains uncertain, now scheduled for the second quarter of this year.

Fraud Allegations Add to Regulatory Pressure

The charge of “fraud on an especially large scale” carries serious implications under Russian law. While the court has not released further information, the arrest adds to a growing list of enforcement actions targeting crypto leaders and projects in Russia and beyond.

As of now, the tap-to-earn ecosystem has reached a market cap of $511 million, according to data from CoinGecko. Many of these platforms operate in regulatory gray zones, making them ripe for scrutiny.