The Rise and Fall of Valeria Fedyakina, the “Crypto Queen”
Valeria Fedyakina, known in the digital currency world as “Bitmama,” has been accused of serious financial crimes, facing multiple counts of large-scale fraud. Despite maintaining her innocence, Fedyakina’s legal team has requested her release from pre-trial detention, where she is being held with her newborn daughter.
Fraud Charges and Investigation Details
The Russian Investigative Committee has concluded its investigation into Fedyakina, a prominent figure in the cryptocurrency community and social media star. According to the state-owned news agency TASS, she is alleged to have orchestrated a scheme that resulted in damages exceeding 2.2 billion rubles, which is approximately $23 million USD. Four unnamed victims have come forward in this case, alleging that Fedyakina engaged in deceptive practices around cryptocurrency transactions.
Authorities claim that Fedyakina utilized illegal methods across various currencies, including cryptocurrencies. It has been reported that she facilitated over-the-counter transactions and primarily used Bitcoin (BTC) to transfer funds to and from Dubai. The Investigative Committee has accused her of offering services for currency conversion without adhering to legal standards, essentially conducting international money transfers without utilizing bank accounts.
The Allegations of Deception
Fedyakina’s alleged fraudulent activities included presenting herself as a legitimate investor in various sectors such as oil, gold, and other minerals. The Investigative Committee asserts that she intentionally misled investors by promoting a crypto-powered investment program, guaranteeing quick returns on their investments. Through her active social media presence, particularly on Instagram, she cultivated a lifestyle that attracted individuals to invest both fiat and cryptocurrency in her ventures.
Defense Team’s Argument Against Flight Risk
In a recent development, Fedyakina’s legal representatives have dismissed claims that she poses a flight risk. They argue that her residence permit in the UAE expired in February 2023, and highlight her lack of previous convictions, her citizenship in the Russian Federation, and her current situation of being detained alongside her infant daughter. A major Russian media outlet pointed out that Fedyakina was reportedly seen converting client funds into “suitcases full of cash” while promising to invest their money responsibly.
Testimonies and Key Witnesses
Reports indicate that one of the main witnesses in the case against Fedyakina was once her close friend. Initially, this individual aided Fedyakina in spreading misleading information about her operations on social media. However, they later became aware of the deception and have since turned against her, providing critical testimony for the prosecution.
Fedyakina was arrested in late September 2023 while pregnant and has given birth during her time in custody. Initially, there were allegations connecting her to the transfer of funds to the Armed Forces of Ukraine, although such claims have not resurfaced in the latest accusations, suggesting a shift in focus from investigators.
The Current Legal Standing
As of now, Fedyakina remains in custody following a ruling by the Moscow City Court, which has yet to set a date for her appeal hearing. The case continues to draw attention as the cryptocurrency landscape evolves in Russia, particularly amidst increased trade activities with the UAE.
The unfolding story of Valeria Fedyakina, once celebrated as the “Crypto Queen,” now serves as a cautionary tale about the potential risks associated with cryptocurrency investments and the importance of regulatory oversight in this rapidly developing financial domain.