A social media influencer currently in custody may be facing a lengthy stay in a Russian prison, potentially up to 10 years, for charges related to cryptocurrency fraud. Valeria Fedyakina, known as the “Crypto Queen,” is under investigation for a series of large-scale fraudulent activities, which allegedly involved financing the Ukrainian military during the ongoing conflict between Ukraine and Russia.
Valeria Fedyakina presented herself as a cryptocurrency entrepreneur to gain the confidence of her victims. Image: NX/New York Post
‘Crypto Queen’ Refutes Charges
Fedyakina denied the fraud allegations reported by RIC, asserting that she is innocent of any wrongdoing. However, she stated to Russian media that she supports her country’s invasion of Ukraine.
Her legal team has pointed out that Fedyakina has no prior criminal record, suggesting that she could be a target of a conspiracy.
In September 2023, Fedyakina was apprehended by Russian authorities as she attempted to board a flight to the United Arab Emirates (UAE). Since that time, she has been held in a pre-trial detention center with her infant child.
Reports indicate that Russian authorities are expected to formally charge her with fraud by November. If found guilty, she might face up to 10 years in prison.
Fedyakina was arrested by authorities in September 2023. Image: Newsflash
$22 Million in Cryptocurrency Misappropriated
An investigation by the Russian agency revealed that the Crypto Queen allegedly misappropriated $22 million in cryptocurrency from her investors.
After concluding their investigation, RIC suggested that criminal charges be levied against her for four counts of fraud. The agency accused Fedyakina of violating Part 4 of Article 159 of the Criminal Code of the Russian Federation by deceitfully stealing others’ property.
Nonetheless, Fedyakina has professed her innocence, entering a not-guilty plea regarding the associated crimes.
BTCUSD trading at $66,470 on the 24-hour chart: TradingView.com
No Registration with Tax Authorities
Findings from the investigation revealed that Fedyakina’s ventures, ‘Bitmama’ and ‘Bitmama Finance’, were functioning without appropriate registration. Authorities determined that she had no record of being registered as an entrepreneur with the Russian tax authority.
Consequently, investigators have concluded that Fedyakina may have had intentions to mislead individuals and abscond with their funds.
Her Scheme
Reports indicate that Fedyakina presented herself as a prominent cryptocurrency expert to win the trust of potential victims before orchestrating her scheme to seize their cryptocurrency assets.
Investigations uncovered that, in addition to Moscow City, the ‘Crypto Queen’ has established a network of offices in various global locations including Monaco, Dubai, Turkey, and Serbia.
Authorities reported that Fedyakina convinced her victims to transfer money to a Dubai cryptocurrency account, a strategic move to bypass traditional bank restrictions.
She also lured victims with promises of a 1% bonus for any funds they transferred to her for cryptocurrency exchanges.
Featured image from Newsflash, chart from TradingView
