He is suspected of fraud under Article 159 of the Russian Criminal Code, which carries potential prison sentences of two to twelve years.

Blum, known for its 'tap-to-earn' gaming model, has distanced itself from Smerkis and emphasized its commitment to continuing operations.

Many investors are now skeptical about Blum's operations and integrity following the arrest of one of its key leaders.

Vladimir Smerkis, co-founder of the crypto game Blum and former head of Binance’s CIS division, was arrested in Moscow on May 15, 2025, on suspicion of large-scale fraud.

Following his arrest, Smerkis has stepped down from his role as Chief Marketing Officer of Blum and is no longer involved with the project.

While Blum has not yet issued an official statement regarding Smerkis's detention, the remaining team members have pledged to uphold the company's mission.

Community members are seeking clarification about the airdrop, citing a lack of communication from Blum since the incident.

Despite these challenges, Blum remains optimistic about regaining trust with investors and partners.

Smerkis's arrest comes amid increasing scrutiny on tap-to-earn platforms, which have gained popularity in the crypto gaming space.

The tap-to-earn gaming sector has garnered significant attention, especially after the success of Hamster Kombat in 2024, which featured the largest token airdrop in the crypto industry.

The Zamoskvoretsky District Court has approved his detention, but specific details of the fraud case remain undisclosed.

Concerns have arisen within the Blum community regarding the planned airdrop of their BLUM token, with users expressing doubts about its execution following Smerkis's arrest.