Smerkis’s arrest on May 16, 2025, comes amid increasing scrutiny of “tap-to-earn” platforms, a sector in which Blum has been a prominent player. These platforms allow users to earn digital tokens by engaging in simple in-app activities, such as tapping on-screen elements. Blum gained popularity by enabling users to collect in-game currency through tapping falling snowflakes, with the promise that these tokens could be converted into real money.
While the specific details of the fraud charges have not been disclosed, reports suggest that the allegations may be linked to Smerkis’s previous ventures, including The Token Fund and Tokenbox. Both projects reportedly raised substantial funds from investors but ultimately failed, leading to significant financial losses. Sources indicate that investors may have lost over $15 million across these ventures.
Blum’s Response
In response to the arrest, Blum issued a statement to its 5.3 million followers on X (formerly Twitter), clarifying that Smerkis had resigned from his role as Chief Marketing Officer and is no longer involved with the project in any capacity. The company emphasized that it is committed to continuing its operations and maintaining transparency with its user base.
Blum’s management stated:
“We would like to inform our community that Vladimir Smerkis has stepped down from his role as CMO and is no longer involved in the development of the project or in any co-founder capacity.”
Industry Implications
The arrest of a high-profile figure like Smerkis has raised concerns within the cryptocurrency community, particularly regarding the legitimacy and sustainability of tap-to-earn platforms. The sector, which gained traction following the success of games like Hamster Kombat in 2024, currently boasts a market capitalization of approximately $511 million.
Crypto influencer RK Gupta expressed skepticism about Blum’s future, questioning the company’s silence on promised airdrops and project updates. In a post on X, Gupta stated.
“Blum co-founder arrested in Russia. We tapped every day for that airdrop. Now the co-founder is gone? No airdrop. No updates. Just silence. Was it all for nothing?”
Conclusion
Vladimir Smerkis’s arrest underscores the need for increased due diligence and regulatory oversight in the rapidly evolving crypto industry. As the legal proceedings unfold, the cryptocurrency community will be watching closely to assess the impact on Blum and similar platforms, as well as the broader implications for investor trust and market stability.