“Queen of Crypto” accused of $22M crypto fraud
Valeria Fedyakina, known as the “Queen of Crypto” or “Bitmama,” is facing accusations of defrauding investors out of over $22 million in a cryptocurrency-related scheme.
According to reports from Russian media, Fedyakina allegedly operated a pyramid scheme that attracted multiple victims within a short period, posing as a cryptocurrency expert.
Authorities claim Fedyakina promised investors a 1% return by converting their funds into cryptocurrency, which has become more popular in Russia amidst economic sanctions.
Some victims reported significant financial losses, with one individual alleging a loss of $74 million.
However, official investigations have verified total losses of $22 million from four main victims.
Reports indicate that Fedyakina presented herself as having offices in several cities, including Dubai, Monaco, and Moscow, to gain investors’ trust.
Law enforcement claims she misled investors by assuring them that their funds would be sent to Dubai to bypass banking restrictions.
Additionally, she allegedly persuaded one investor to commit millions to an oil export scheme with promises of high returns in a short timeframe.
Investigations revealed that Fedyakina used some of the proceeds to fund Ukrainian military efforts, complicating her legal defense.
Her team has denied the fraud claims, suggesting she is a victim of a broader conspiracy.
They maintain that Fedyakina did not intend to deceive anyone.
After her arrest over a year ago, Fedyakina attempted to flee to the United Arab Emirates while pregnant, leading authorities to place her under temporary house arrest.
Following the birth of her child, she was returned to detention, where reports suggest she has faced difficult conditions.
Prosecutors are set to file formal charges against Fedyakina in November.
If convicted, she could face a prison sentence of up to ten years for her involvement in illegal cryptocurrency activities and several alleged investment scams.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Congress’s top priorities this lame duck session
Here’s a look at what lawmakers are most focused on in these final weeks of the 118th Congress
First-ever Dogecoin ETP debuts in Nordics as Elon Musk boosts interest in the crypto asset
BTC breaks through $94,000
The ZKasino project borrowed 12.38 million DAI from Aave again in the past 2 hours to go long on ETH