Vladimir Smerkis, co-founder of the crypto project Blum, was arrested in Moscow on fraud charges according to Russian state news outlet TASS. Smerkis is accused of committing fraud on a significant scale, which can lead to 2 to 12 years of imprisonment under Article 159 of Russia's Criminal Code. Although no formal charges are disclosed yet, the allegations are linked to his past ventures, The Token Fund and Tokenbox, where investors reportedly lost about $15 million. Blum confirmed Smerkis's resignation from the project and stated that their operations would continue without him. The news raised concerns regarding Blum's planned token airdrop, with community members expressing anxiety over the project's future and demanding clarity about the airdrop schedule. Blum previously indicated plans to potentially list its BLUM token in the third quarter and engage users through a newly launched Drop Game to earn tokens.

Source đź”—