Investigation Accuses Previous Binance CEO of Alleged Fraudulent Activities
Vladimir Smerkis, once a key figure at Binance and Blum, now a suspect in a massive fraud case
Looks like the former director of Binance for the CIS and co-founder of the cryptocurrency trading app, Blum, Vladimir Smerkis, has landed in some hot water. According to court records from the Zamoskvoretsky Court in Moscow, Smerkis has become a subject of a criminal investigation.
The investigation, initiated on May 16, allegedly falls under part 4 of Article 159 of the Criminal Code, dealing with fraud charges. The court records don't disclose any decisions made so far.
As reported by TASS, citing law enforcement agencies, Smerkis has been apprehended. The specifics of the case are not yet known, as neither RBC nor other news outlets have released any details.
Just yesterday evening, a message was posted in the Blum Telegram channel announcing Smerkis's departure from his role as marketing director and his withdrawal from the project's development.
Smerkis and Gleb Kostarev, Eastern Europe director at Binance, parted ways with the company in September 2023, shortly after Binance left the Russian market due to "new challenges." In April 2024, they launched Blum - a cryptocurrency exchange operating as a Telegram mini-app for trading digital assets. As of April 2025, the service claimed over 92 million users. Last September, Binance Labs, a venture capital fund, invested in the cryptocurrency exchange.
In February 2025, Blum announced that it had secured $5 million in investments for its project development.
While the exact nature of Smerkis's alleged crimes remains unknown, it's worth noting that the “tap to earn” games sector, which includes Blum, is under growing scrutiny following the success of other games like Hamster Kombat[2]. However, no clear links between these games and the fraud allegations against Smerkis have been established in the available reports. As the investigation continues, more information on the case is expected to be released. Stay tuned for updates!
- The fraud investigation against Vladimir Smerkis, a former key figure in Binance and co-founder of Blum, has raised concerns in the general-news sphere, particularly in the business and finance sectors.
- In light of the criminal investigation against him, Vladimir Smerkis's alleged involvement in fraud could have major implications for the credibility and future of Blum, a successful cryptocurrency trading app, given its growing presence and investments in the industry.
