The co-founder of Blum and former executive of Binance CIS, Vladimir Smerkis, has been arrested in Moscow on charges of large-scale fraud.
⚫ It is reported that the arrest is related to previous operations in which investors lost at least 15 million dollars.
⚫ Smerkis previously led The Token Fund and Tokenbox, which collapsed after raising 8 million dollars and 7 million dollars respectively.
⚫ On May 15, Blum announced his resignation and confirmed that he no longer has any role in the project.
⚫ The project team stated that operations are continuing normally and distanced itself from Smerkis's legal troubles.