# Blum Co-founder Vladimir Smerkis Detained in Russia on Fraud Charges
## Introduction
Vladimir Smerkis, one of the co-founders of the Telegram-based crypto project Blum, has recently been detained in Moscow on allegations of large-scale fraud. This move has raised concerns about the future of the project and the potential impact on the crypto community.
### Arrest and Charges
The Zamoskvoretsky District Court in Moscow approved the detention of Vladimir Smerkis after a request from state investigators, as reported by the Russian news agency TASS. The charges against Smerkis are based on Article 159 of Russia’s criminal code, which deals with serious fraud offenses. If found guilty, he could be sentenced to up to 12 years in prison. However, authorities have yet to confirm if formal charges have been officially filed against him.
### Past Ventures Under Scrutiny
Local media outlet Mash has linked Vladimir Smerkis to previous crypto ventures, including ‘The Token Fund and Tokenbox.’ These platforms, established in 2017, were reportedly associated with losses of approximately $15 million for investors. While Blum is not directly linked to these past ventures, the ongoing investigation has brought the project into the spotlight. Smerkis, who also previously oversaw operations for other ventures, is now facing legal challenges that could have significant repercussions.
## Conclusion
The detention of Vladimir Smerkis on fraud charges has sent shockwaves through the crypto community, questioning the integrity of projects like Blum and raising concerns about investor protection. As legal proceedings unfold, the future of Blum and its stakeholders remain uncertain, underscoring the importance of transparency and compliance in the crypto industry. Stay tuned for updates on this developing situation on CoinGape.com.