Moscow court: Former CIS head at Binance sentenced to 5 years in prison for “large-scale fraud”

According to Bits.media, on May 12, the Presnensky Interdistrict Court of Moscow sentenced Binance Russia and the CIS’ former regional head, and Vladimir Smerkis (Vladimir Smerkis), co-founder of the Blum crypto platform, to five years in prison. Smerkis was found guilty of large-scale fraud under Article 159, Paragraph 4 of the Russian Criminal Code. He is 41 years old.

Case details: Fraud allegations over ad promotion services

According to Bits.media, Russian prosecutors said that in June 2024, a crypto trader, blogger, and founder of the PoluninTrade channel, Oleg Polunin, contacted Smerkis and commissioned him to run an advertising promotion campaign for a personal social media account. Smerkis promised to attract about 2 million new users and viewers for Polunin for a fee of over 8.8 million rubles; Polunin then transferred the payment into a cryptocurrency wallet.

Prosecutors said that Smerkis failed to fulfill the related obligations—he did not arrange the promised advertising promotion for Polunin and instead unlawfully disposed of the received funds. About a year before the verdict, the court was expected to investigate an arrest request for Smerkis by the authorities.

Defendant background: Former Binance executive and Blum game

According to Bits.media, Smerkis served as regional head for Binance Russia and the CIS from early 2022 until September 2023, until the unit was liquidated. After that, he and another former Binance regional head, Gleb Kostarev, jointly announced the launch of the game platform Blum. Blum was positioned as a similar project to the 2024 hit clicker game Hamster Kombat. According to the report, on the day Smerkis was arrested, the Blum team announced that he had formally stepped down from the project’s top management role.

FAQ

What did the Moscow court rule in Smerkis’ case, and what was the legal basis?

According to Bits.media’s May 12, 2026 report and the official statement from the Presnensky Interdistrict Prosecutor’s Office, the 41-year-old Vladimir Smerkis was sentenced to five years in prison in a regular prison, with the charge determined as large-scale fraud under Article 159, Paragraph 4 of the Russian Criminal Code. The verdict has not yet taken effect, and an appeal can be filed.

What are the specific amount involved and actions in the fraud allegations in this case?

According to Bits.media’s account of the Russian prosecutors’ position, Smerkis received over 8.8 million rubles in advertising promotion fees from PoluninTrade channel founder Oleg Polunin, promising to attract about 2 million new users, but failed to fulfill the obligations and unlawfully used the funds received.

What is Smerkis’ job background at Binance and Blum?

According to Bits.media, Smerkis served as regional head for Binance Russia and the CIS from early 2022 until September 2023; afterward, he co-founded the game platform Blum with a former Binance colleague. On the day of his arrest, the Blum team announced that he had stepped down from the highest management position.