Vladimir Smerkis Arrested Amid Allegations Linked to $15 Million in Lost Crypto Investments
Date: May 19, 2025
By: Darya
Edited by: Dorian Batycka
Source: Crypto News
In a significant development within the cryptocurrency sector, Vladimir Smerkis, who previously served as the chief of Binance Russia and co-founded the crypto trading app Blum, has been arrested. This arrest is reportedly associated with past ventures that led to financial losses exceeding $15 million for investors.
Court Proceedings and Charges
The Zamoskvoretsky District Court issued the arrest of Smerkis late last week. While specific charges have yet to be officially disclosed by the authorities, the arrest appears to stem from Smerkis’s involvement in two failed cryptocurrency platforms—The Token Fund and Tokenbox—both of which are under scrutiny following their collapse.
Background on Failed Ventures
Vladimir Smerkis was instrumental in the founding of The Token Fund in 2017, which operated as a crypto investment vehicle allowing users to buy tokens (TKN) with promises of high returns. The project raised approximately $8 million but abruptly ceased operations in 2018, leaving investors reportedly unable to recover their funds.
Following that, Smerkis co-founded Tokenbox, a project that raised $7 million and launched its own token (TBX), which was briefly listed on exchanges. However, the value of TBX plummeted quickly, resulting in its deactivation.
Reactions from Blum and the Crypto Community
Smerkis’s latest project, Blum—a Telegram Mini App that merges crypto trading with gamified features—has also come under fire. In light of the arrest, Blum’s team has distanced itself from Smerkis, clarifying in a social media post that he had “stepped down from his role as CMO” and no longer plays any part in the project’s operations or decision-making.
Despite these reassurances, uncertainty looms over Blum, particularly regarding an upcoming token airdrop meant for users who earned Blum Points through participation in a gamified trading experience released in May 2024. Initial plans for airdrops were projected shortly after the conclusion of the game; however, the timeline has been repeatedly extended with vague updates, and the new estimated date has now moved to the second quarter of 2025. This shift has led many in the community to speculate about whether the token generation event (TGE) will proceed as planned.
Conclusion
The situation surrounding Smerkis and his associations with failed crypto ventures highlights the vulnerabilities within the cryptocurrency landscape, where investor confidence is often shaken by high-profile scandals. As the court proceedings unfold, the implications for Blum, its users, and the broader crypto community are yet to be fully realized. The upcoming months may reveal critical insights into the sustainability and regulatory pressures facing emerging cryptocurrency projects.
This unfolding story will continue to be monitored as more details become available.
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