Russia’s “crypto queen” Valeria Fedyakina, also known as “Bitmama,” is facing allegations of taking “suitcases full of cash” from individuals who used her exchange services to send money abroad. The TV news channel Vesti recently aired an exposé detailing Fedyakina’s activities, including videos showing her with euro banknotes in suitcases. Prosecutors and police suspect that she took cash from people looking to send funds to Dubai using Bitcoin as a remittance tool, as well as being involved in various crypto-themed fraud projects. Fedyakina had cultivated an image of wealth on social media, portraying herself as a successful crypto entrepreneur.
A preliminary investigation into Fedyakina, who has been detained for over a year, has been completed by prosecutors in Moscow. She is facing charges of committing fraud on an especially large scale, with one victim claiming to have given her almost $70 million in cash. The victim alleges that Fedyakina offered a cash transfer service using armored cars to move money to her office in Moscow for subsequent transfer to Dubai. Additionally, she reportedly persuaded investors to put money into fake schemes, including Dubai-based hotel projects and oil-related ventures. Fedyakina’s legal team is currently reviewing the case materials and has appealed an extension of her detention until December 15.
One victim recounted being enticed by Fedyakina to invest in an oil-buying project, requiring an initial investment of around $8 million. The victim was promised hefty returns from the venture, which turned out to be a fraudulent scheme. The lawyer for one of the victims described Fedyakina as someone who used official-looking documents and impressive PR materials to portray herself as a financial genius capable of making large sums of money in a short period. Despite being pregnant at the time of arrest, Fedyakina was not released and gave birth while in custody. She has since been moved to a special cell with childcare facilities.
With the prosecution preparing to present its case at trial, Fedyakina’s legal team is working on her defense strategy. If convicted, she could face up to 10 years in a penal colony. The case against the self-styled “crypto queen” has raised concerns about fraudulent activities within the cryptocurrency industry and the need for increased regulation to protect investors from such scams. Fedyakina’s case exemplifies the risks associated with unregulated crypto operations and the importance of conducting due diligence before engaging in any transactions in the digital asset space.
The allegations against Fedyakina highlight the potential for abuse and fraud in the crypto sector, as well as the challenges faced by authorities in regulating the rapidly evolving industry. The case serves as a cautionary tale for investors and enthusiasts to exercise caution when dealing with unverified platforms or individuals offering high returns that seem too good to be true. As the popularity of cryptocurrencies continues to grow, it is imperative for regulators and law enforcement agencies to crack down on illegal activities and protect consumers from falling victim to financial scams in the digital realm. Fedyakina’s downfall serves as a warning to others who may be tempted to engage in fraudulent practices within the crypto space, emphasizing the importance of transparency and accountability in building trust within the industry.
