Russia arrests Vladimir Smerkis, co-founder of Blum, accused of fraud

The co-founder of the Telegram-based cryptocurrency project Blum, Vladimir Smerkis, is in custody in Moscow, accused of committing large-scale fraud, according to TASS.



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Vladimir Smerkis, co-founder of the Telegram-based cryptocurrency project Blum, has been arrested in Moscow, Russia, reportedly on fraud charges, while Blum confirms that he is no longer affiliated with the project.

The Zamoskvoretsky District Court of Moscow approved a request from investigators to keep Smerkis in custody while he is being investigated, the Russian state news agency TASS reported on May 18.

Smerkis, who previously led Binance's operations in Russia, is suspected of committing fraud on a “large scale,” under Article 159 of the Criminal Code of the Russian Federation, violations of which can result in prison sentences ranging from two to 12 years.