Bitrabo Editorial
A social media influencer facing accusations of crypto fraud may be looking at a lengthy sentence in a Russian prison. Valeria Fedyakina, known as the “Crypto Queen,” is embroiled in several serious allegations regarding large-scale fraudulent activities, reportedly involving funding the Ukrainian military during the ongoing conflict between Russia and Ukraine.
Allegations Denied by Fedyakina
Fedyakina has denied the fraud claims made by Russian investigators, asserting that she is innocent. However, she has publicly expressed support for Russia’s military actions in Ukraine. Her defense team pointed out that Fedyakina has no previous criminal records and suggested she might be a target of conspiratorial actions against her. She was arrested in September 2023 while attempting to board a flight to the UAE and has since been held in a pre-trial detention facility with her baby. Official charges are expected to be brought against her by November, with a potential 10-year imprisonment looming if convicted.
Alleged Theft of $22 Million
Investigators from the Russian agency reported that the “Crypto Queen” managed to steal $22 million from investors through fraudulent cryptocurrency dealings. They have suggested that she should face four counts of fraud, as her actions were found to be in violation of Part 4 of Article 159 of the Russian Criminal Code for deceiving and stealing others’ assets.
Despite the evidence, Fedyakina has consistently pleaded not guilty to the allegations against her.
Lack of Registration with Tax Authorities
Further investigation revealed that Fedyakina’s ventures, ‘Bitmama’ and ‘Bitmama Finance,’ were operating without the necessary registration. Authorities established that she was not listed as an entrepreneur with the Russian tax department, leading to the conclusion that she had likely aimed to defraud individuals of their money.
How She Operated
Reports indicate that Fedyakina presented herself as a prominent cryptocurrency expert to gain the trust of her targets before conning them into surrendering their digital assets. Her operations were not limited to Russia; she had established offices in key international locations like Monaco, Dubai, Turkey, and Serbia. To facilitate her fraud, she advised victims to transfer funds to a crypto account in Dubai, circumventing traditional banking restrictions. She also lured potential customers with offers of a 1% bonus for transferring their funds for cryptocurrency conversions.
Featured image from Newsflash, chart from TradingView