Blum co-founder arrested in Russia on fraud charges, risking disruption to BLUM issuance

The co-founder of Telegram-based cryptocurrency project Blum has reportedly been arrested and is currently in custody on suspicion of large-scale fraud.
On the 18th (local time), Russian state media outlet TASS reported that Blum co-founder Vladimir
The report said Smerkis was arrested and is currently in custody in Moscow, Russia, on suspicion of large-scale fraud. Smerkis is a former Binance
He was the head of operations for Russia and has now completely severed ties with the Blum project.
On the same day, the company confirmed through X that Smerkis had stepped down from his position as CMO and was no longer involved in the project in any way.
According to reports, Moscow's Zamoskvoretsky District Court agreed to a request from investigators and decided to detain Smerkis for the duration of the investigation.
Smerkis is suspected of "large-scale fraud" under Article 159 of the Russian Criminal Code and faces up to 12 years in prison if convicted.
It has not been disclosed whether he has been indicted. Russian media outlet Massie reported that the charges relate to the alleged involvement of The Token, a cryptocurrency that Smerkis co-founded in 2017.
The report said the losses to investors in the projects are estimated to be around $15 million.
Blum stressed that it is not involved in the two projects, stating that "the team remains focused on achieving its goals, and day-to-day operations will continue as normal."
The news of Smerkis' arrest has led to concerns that Blum's token airdrop plans may be disrupted. Blum announced last month on April 3rd through a post by X.
The company had previously suggested that the BLUM token would be listed during the third quarter of this year. However, after Smerkis' arrest, doubts arose within the community as to whether the BLUM token would actually be issued.
It is increasing.