Russian ‘crypto queen’ Valeria Fedyakina, aka Bitmama, faces $23M fraud charges

The Russian social media influencer Valeria Fedyakina, known as “Bitmama,” is under legal scrutiny, facing multiple fraud charges.

Russian authorities allege that she caused damages of over 2.2 billion rubles (around $23 million) through illegal cryptocurrency activities.

Despite these accusations, Fedyakina and her legal team maintain her innocence, calling the charges unfounded.

The case has drawn significant attention due to her substantial following and alleged use of cryptocurrencies like Bitcoin for international transfers, highlighting the complexities of crypto regulations and the risks of unregulated digital finance.

What are the allegations against Fedyakina?

The Russian Investigative Committee accuses Valeria Fedyakina of engaging in large-scale fraud, using various currencies, including digital assets, to facilitate transactions.

According to the committee’s investigation, Fedyakina operated an unlicensed crypto exchange service, reportedly enabling clients to transfer funds between Moscow and Dubai.

These activities allegedly bypassed traditional banking channels, raising concerns about illegal money transfers.

The committee’s legal documents highlight four key victims, but their identities remain undisclosed.

The total damage is estimated to exceed 2.2 billion rubles, raising questions about the scale of crypto fraud in Russia.

How did Fedyakina operate her crypto business?

Fedyakina reportedly used over-the-counter (OTC) crypto transactions to move funds, primarily utilizing Bitcoin for cross-border payments.

Her activities involved facilitating conversions between fiat and cryptocurrency, appealing to clients seeking anonymity in their transactions.

Media reports claim she guaranteed high returns through a crypto-backed investment program, promoting it heavily on social media platforms like Instagram. Fedyakina’s posts often showcased a luxurious lifestyle, attracting potential investors with promises of quick profits.

The committee alleges that these promises were part of a broader scheme to deceive clients, leading to substantial financial losses.

Fedyakina’s legal team argues that the allegations of her being a flight risk are baseless.

They highlight that her UAE residence permit expired earlier this year, diminishing any potential plans to leave Russia.

They also emphasize that she is a Russian citizen with no prior criminal record.

Currently, she remains in a pre-trial detention center with her newborn daughter.

The defense has called for her release pending trial, but the Moscow City Court has yet to decide on an appeal.

Former friend turns key witness

Reports indicate that a former friend of Fedyakina’s has emerged as a key witness in the case.

This individual allegedly helped Fedyakina promote her investment program on social media but later claimed they were also misled.

This turn of events has added a new dimension to the case, with the witness providing crucial insights into Fedyakina’s activities.

The witness claims they initially believed in Fedyakina’s ventures but later realized the investment schemes were fraudulent.

This testimony could significantly impact the outcome of the trial, as prosecutors seek to establish a pattern of deception.

Media reports have suggested that Fedyakina may have used her influence to convince clients to invest in questionable projects, including an oil export scheme.

A Russian media outlet alleged that Fedyakina accepted large sums of cash, which were then transferred abroad through her crypto exchange services.

These reports add to the narrative that Fedyakina’s operations went beyond typical cryptocurrency trading.

The allegations also underline the risks of unregulated digital financial activities, especially when combined with high-profile social media marketing.

With the investigation now concluded, the next steps involve a court trial where Fedyakina will respond to the fraud allegations.

An appeal date has yet to be set, and Fedyakina remains in detention.

If found guilty, she could face significant legal consequences, given the scale of the alleged damages.

The case continues to draw media attention, reflecting the growing concerns about crypto-related fraud and the legal system’s ability to tackle such complex issues.

For now, Fedyakina’s future hangs in the balance as the Russian courts prepare to hear her case.

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