The co-founder of Blum has been arrested: What does the future hold for the project?

Recently, the co-founder of the web3 project on Telegram, Blum, Vladimir Smerkis, was arrested in Moscow, Russia, on charges of cryptocurrency fraud related to two past projects.

Vladimir Smerkis – Co-founder of Blum Arrested

On May 18, Russian state news agency TASS reported that Vladimir Smerkis, co-founder of Blum—a platform integrating decentralized exchange (DEX) into Telegram Mini App—was arrested in Moscow on charges of large-scale fraud under Article 159 of the Russian Criminal Code. With this charge, Smerkis could face a sentence of 2 to 12 years in prison.

The Zamoskvoretsky District Court approved Smerkis’s detention during the investigation. Blum quickly issued a statement, asserting that Smerkis no longer held any role in the project and had resigned as Marketing Director. They emphasized that Blum continues to operate normally and remains committed to its mission. However, such reassurances have not alleviated the wave of panic within the community.