Russian influencer facing $22 million crypto fraud charges

A high-profile Russian influencer, popularly known as the “Queen of Cryptography,” is under scrutiny for allegedly defrauding investors of $22 million.

According to various Russian press reports, Valeria Fedyakina, who made a name for herself as “Bitmama,” is accused of operating a pyramid scheme that snared multiple victims in just two months.

Four victims lost $22 million

The 24-year-old was arrested a little over a year ago after lengthy investigations prompted by numerous complaints from her investors. According to reports, some of his victims claim to have lost staggering amounts of money, with one even claiming he stole around $74 million from her.

However, official investigations so far have only confirmed losses totaling just over $22 million in various currencies, including crypto, from four main victims.

Detectives claim Fedyakina posed as a cryptocurrency expert, claiming to have global offices in several cities, including Dubai, Monaco and Moscow. This facade helped her gain the trust of potential investors, whom she convinced to transfer funds under the guise of investing in lucrative crypto ventures.

Bitmama promised investors a return of 1% of their money, which it said would be converted into cryptocurrency. These assets have become increasingly popular in Russia as the country looks for ways to avoid stinging economic sanctions.

The scheme allegedly involved telling victims that their funds would be sent to Dubai to circumvent banking restrictions. Fedyakina’s plot wasn’t just limited to cryptography; one victim told investigators how he lured him into investing millions in a supposed oil export scheme, promising high returns in an unreasonably short period.

The proceeds of the fraud allegedly used to fund the Ukrainian military

As the investigation unfolded, law enforcement authorities discovered that the influencer had allocated significant sums to support Ukrainian military efforts, saying he was raising funds to combat Russian aggression.

However, despite the seriousness of the allegations, his defense team has maintained that he never intended to mislead anyone. They have continually denied claims of fraud, saying instead that their client is the victim of an unspecified broader conspiracy within the crypto space.

Fedyakina has also pledged her loyalty to Russia’s cause, saying she would support its military if freed.

His legal troubles intensified when he tried to flee Russia for the United Arab Emirates (UAE) shortly after his arrest. Since she was six months pregnant at the time, the incident attracted a lot of media attention, forcing the authorities to temporarily place her under more lenient house arrest.

However, shortly after giving birth in a special maternity center, Fedyakina was returned to detention, where reports claim she faced harsh conditions.

Prosecutors are expected to file formal charges against her in November, and if convicted, she could face up to ten years in prison. Not only has he been accused of facilitating illegal crypto transactions, but he has also been accused of orchestrating several scams targeting private investors and large corporations.

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