The Telegram-based crypto platform Blum’s co-founder, Vladimir Smerkis, has been arrested in Moscow due to a fraud investigation.
On May 18, Russia’s Zamoskvoretsky District Court approved a request to keep him in custody while the case is under review.
State news agency TASS reported that the arrest relates to suspected large-scale fraud under Article 159 of the country’s criminal code, which could carry a prison sentence of two to twelve years.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Ethereum & What is it Used For? (Animated Explanation)
According to Russian outlet Mash, the investigation may be tied to earlier crypto projects Smerkis helped launch, The Token Fund and Tokenbox, both founded in 2017. Reports claim that investors in those projects may have lost a total of around $15 million. However, these projects are not connected to Blum.
In a May 18 post on X, Blum stated that Smerkis had stepped down from his role as chief marketing officer and is no longer part of the team. The company also said that its work will continue without disruption and that it remains focused on its original goals.
Blum is a crypto project built inside Telegram’s Mini Apps. It allows users to trade tokens, earn rewards, and join airdrop campaigns without leaving the app. The company said these services are unaffected by the ongoing investigation and that Smerkis had no role in the older projects.
On May 13, the former CEO and CFO of Cred, a collapsed crypto lending firm, pleaded guilty to wire fraud. What did the plea deals reveal? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
