Vladimir Smerkis, co-founder of Telegram-based crypto project Blum, has been arrested in Moscow on suspicion of large-scale fraud. The Zamoskvoretsky District Court approved his detention following a request from state investigators, according to reports from the Russian news agency TASS on Sunday. The charges against Vladimir Smerkis are based on Article 159 of Russia’s criminal code, which addresses serious fraud crimes. If convicted, Smerkis could face up to 12 years in prison. Authorities have not yet confirmed whether formal charges have been filed. Past Ventures Under Scrutiny Local media outlet Mash linked Vladimir Smerkis and this investigation to previous crypto ventures, ‘The Token Fund and Tokenbox’. Both platforms were launched in 2017. Combined, those projects allegedly resulted in losses of around $15 million for investors. Although Blum is not connected to these older ventures, the incident has placed the project under intense scrutiny. Notably, Smerkis also once headed operations for… Read More at Coingape.com
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