Russian Influencer Going through $22M Crypto Fraud Allegations

A high-profile Russian influencer, popularly referred to as the “Queen of Crypto,” is below scrutiny for allegedly defrauding traders out of $22 million.

Based on varied experiences within the Russian press, Valeria Fedyakina, who made a reputation for herself as “Bitmama,” is accused of working a pyramid scheme that ensnared a number of victims in solely two months.

4 Victims Misplaced $22 Million

The 24-year-old was arrested simply over a 12 months in the past following prolonged investigations prompted by quite a few complaints from her traders. Per the experiences, a few of her victims declare to have misplaced staggering quantities of cash, with one even stating she stole about $74 million from him.

Nevertheless, official investigations have up to now solely confirmed losses totaling barely greater than $22 million in varied currencies, together with crypto, from 4 primary victims.

Detectives declare Fedyakina posed as a cryptocurrency skilled, asserting she had international places of work in a number of cities, together with Dubai, Monaco, and Moscow. This facade helped her to realize the belief of potential traders, who she satisfied to switch funds below the pretext of investing in profitable crypto ventures.

Bitmama reportedly promised traders a 1% return on their cash, which she mentioned can be transformed into cryptocurrency. Such belongings have grow to be more and more well-liked in Russia because the nation seeks methods to bypass biting financial sanctions.

The scheme allegedly concerned telling the victims that their funds can be despatched to Dubai to avoid banking restrictions. Fedyakina’s plotting wasn’t restricted to crypto alone; one sufferer advised investigators how she lured him into investing thousands and thousands in a supposed oil export scheme, promising excessive returns in an unreasonably brief interval.

Fraud Proceeds Allegedly Used to Fund Ukrainian Military

Because the probe unfolded, legislation enforcement authorities found that the influencer had directed substantial sums to help Ukrainian army efforts, saying she was elevating funds to fight Russian aggression.

Nevertheless, regardless of the gravity of the allegations, her protection group has maintained that she by no means supposed to deceive anybody. They’ve repeatedly denied the fraud claims, saying as an alternative that their consumer is a sufferer of a broader unspecified conspiracy inside the crypto area.

Fedyakina has additionally asserted her loyalty to Russia’s trigger, reportedly stating that she would help its army if launched.

Her authorized troubles intensified when she tried to flee Russia for the United Arab Emirates (UAE) shortly after her arrest. On condition that she was six months pregnant on the time, the incident garnered quite a lot of consideration within the media, forcing authorities to position her below a extra lenient home arrest briefly.

Nevertheless, quickly after she gave beginning in a particular maternity facility, Fedyakina was returned to detention, the place experiences declare she was going through harsh situations.

Prosecutors are anticipated to file formal expenses towards her in November, and if convicted, she may face ten years in jail. They haven’t solely accused her of facilitating unlawful crypto transactions however have additionally charged her with orchestrating a number of scams focusing on non-public traders and huge firms.