Former Binance Exec Receives Five-Year Prison Sentence for 'Large-Scale' Fraud

A Moscow court has handed down a sentence of five years in prison to Vladimir Smerkis, the former head of Binance's Russian operations. The conviction stems from allegations that Smerkis committed 'large-scale' fraud against a crypto trader.

Smerkis, who was arrested last spring, was found guilty under Part 4 of Article 159 of the Russian Criminal Code. He is also a co-founder of the crypto game Blum and served as Binance's General Manager for Russia and the Commonwealth of Independent States (CIS) countries between early 2022 and September 2023.

The victim in the case, who wishes to remain anonymous, reported that Smerkis promised to attract 2 million new users to his social media channels in exchange for over 8.8 million rubles. However, Smerkis failed to fulfill his obligations and instead used the funds he received.

Smerkis' defense team may still file an appeal against the sentence in court. The former high-ranking executive left his post at Binance's office in Russia when the division effectively ceased operations in late 2023.