Blum Co-Founder Vladimir Smerkis Arrested in Moscow for Suspected Fraud

In Brief:

Vladimir Smerkis, co-founder of crypto game Blum and ex-Binance CIS head, was arrested in Moscow on fraud allegations.

Blum clarified Smerkis is no longer involved in the project as scrutiny over “tap-to-earn” platforms increases.

Vladimir Smerkis, co-founder of the viral tap-to-earn crypto game Blum and former head of Binance’s CIS division, has been arrested in Moscow on suspicion of fraud, according to reports from BeInCrypto. The Zamoskvoretsky District Court ordered his detention this week, although details of the alleged crime have not been made public.

Blum rose to prominence by tapping into the viral success of tap-to-earn games like Hamster Kombat, allowing users to earn digital rewards by tapping snowflake animations within the app. Blum claimed its in-game currency could be exchanged for real-world value—a promise that placed it under increasing regulatory scrutiny.

In response to the arrest, the Blum team issued a public statement to its 5.3 million followers, stating that Smerkis is no longer involved in the project. “He has stepped down from his role as CMO and holds no co-founder or operational position,” the team emphasized.

The news comes as tap-to-earn platforms face mounting regulatory attention, with the entire segment now holding a market cap of $511 million, according to CoinGecko. As users and regulators alike demand greater transparency, Blum is working to distance itself from controversy and reassure its community of ongoing development.

‍