A Moscow court has ordered the detention of Vladimir Smerkis, co-founder of crypto gaming project Blum, on charges of “large-scale fraud” – just one day after he officially stepped down from the company.
The Arrest Details
- Court Ruling: Zamoskvoretsky District Court approved detention under Article 159 of Russia’s criminal code (fraud exceeding $15M)
- Abrupt Exit: Smerkis resigned as Blum’s CMO hours before arrest reports surfaced
- Ongoing Case: Investigators allege ties to failed crypto ventures where investors lost millions
Smerkis’ Controversial Past
The former Binance CIS head has been linked to two questionable projects:
The Token Fond (2017): Raised 8Mbeforesuddenlyshuttingdown Tokenbox :Collected8Mbeforesuddenlyshuttingdown Tokenbox Collected7M in investments before its TBX token crashed and vanished
What This Means for Blum
The gaming platform claims Smerkis had already exited operations, but:
Timing Raises Questions: Resignation coincided with law enforcement moves
Community Concerns: Investors now scrutinizing Blum’s leadership and finances
Bigger Picture
Russia has recently tightened crypto regulations, and this high-profile case could signal:
- More crackdowns on alleged crypto fraud
- Increased scrutiny of executives with failed ventures
- Potential delays for Blum’s roadmap amid negative publicity
Key Question: Were Smerkis’ past ventures truly fraudulent, or is this part of Russia’s broader crypto suppression?
