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Russian social media influencer Valeria “Bitmama” Fedyakina has been accused of scamming investors out of $23 million (2.2 billion rubles) that she allegedly sent to Ukrainian troops amid an ongoing war.
Russian authorities say the 24-year-old, dubbed the “Queen of Crypto,” operated an unlicensed crypto exchange service, reportedly enabling clients to transfer funds between Moscow and Dubai.
What is Valeria ‘Bitmama’ Fedyakina accused of?
She is accused of promising high returns through a cryptocurrency-backed investment program, which she aggressively promoted on social media platforms like Instagram. Fedyakina allegedly portrayed herself as a cryptocurrency expert.
#bitmama #valeriafedyakina
Valeria Fedyakina (Bitmama), who is being held in a pre-trial detention center and accused of stealing 6.7 billion rubles, said that “she was heavily framed and drowned” – she is just “a pawn in the hands of more experienced players”😎. pic.twitter.com/hWp7rNORpA
— MR. ROBOT (@_true_mr_robot) October 4, 2023
The Russian Investigative Committee alleges that these promises were part of a scheme designed to defraud clients, leading to significant financial losses. According to The New York Post, she gained the trust of at least four victims, from whom she allegedly stole millions within two months. One victim claims to have lost $70 million in the scheme.
Authorities say her activities bypassed traditional banking systems by routing funds through Dubai, raising concerns about illegal money transfers. Reports suggest she used over-the-counter (OTC) crypto transactions, mainly involving Bitcoin, to facilitate cross-border payments.
The committee added: “Fedyakina had a criminal intent to steal money or cryptocurrency by deceiving an indefinite number of people. She did so under the guise of investing in her activities in the transportation and purchase and sale of oil, oil products, gold, and other minerals.”
Legal team denies claims
Her legal team contends that claims she is a flight risk are unfounded. They argue that her UAE residence permit expired earlier this year, reducing any chances of her leaving Russia. In addition, they stress that she is a Russian citizen with no prior criminal record.
Currently, she remains in a pre-trial detention center with her newborn daughter, following her arrest in September 2023. The defense has requested her release pending trial, but the Moscow City Court has not yet ruled on the appeal.
Fedyakina was swiftly tracked down and arrested last year as she tried to flee Russia on a plane to the United Arab Emirates. She was six months pregnant at the time when she was placed in pre-trial detention and refused house arrest.
Formal charges are expected to be bought upon Fedyakina in November. She faces up to 10 years in prison if she is convicted.
In July, ReadWrite reported that Russia’s State Duma — the lower house of the Russian Parliament — is currently reviewing regulation, to possibly legalize cryptocurrencies. Russia’s change of stance on cryptocurrencies follows mounting United States pressure considering the imposition of secondary sanctions on foreign banks.
Featured image: Ideogram
