Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum, has been arrested in Moscow on allegations of large-scale fraud. The Zamoskvoretsky District Court approved the request for his custody as investigators look into the charges. He is suspected of violating Article 159 of the Russian Criminal Code, which could lead to imprisonment for up to 12 years. The accusations stem partly from Smerkis's prior involvement in The Token Fund and Tokenbox, ventures established in 2017, resulting in reported losses of around $15 million for investors. Following his arrest, Blum confirmed that Smerkis has resigned from the project and will no longer have any association with it. The firm stated its operations would continue as planned, but concerns about the planned airdrop of the BLUM token have been raised. Community members are seeking clarifications regarding the airdrop amidst the uncertainty following Smerkis's legal troubles.

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