Valeria Fedyakina, also known as Russia’s “Crypto Queen” and “Bitmama”, has been formally charged with pilfering $21.3 million worth of Bitcoin and other currencies from her clients. Fedyakina amassed a large fan base via her social media platforms, where she portrayed a luxurious lifestyle and promoted herself as a cryptocurrency broker. Despite her glamorous image, prosecutors now claim she offered her clients high-return cryptocurrency investments, but failed to deliver on these promises with the funds disappearing shortly thereafter.
Prosecutors claim Fedyakina misappropriated a significant amount of money including Bitcoin and UAE dirhams. The damage in one instance reportedly reached 800 million rubles ($7.8 million), with the total damage equating to at least 2.2 billion rubles (around $21.3 million). Authorities have ordered a freeze on Fedyakina’s accounts and crypto wallets, and other assets in a bid to potentially recompense the victims of her alleged scheme.
Denying these accusations, Fedyakina faces prosecution under Article 159 of the Russian Criminal Code for her alleged offenses. If found guilty, she could serve up to a decade in prison and pay a fine of up to 1 million rubles ($9,700).
While Fedyakina’s legal team continues to maintain her innocence, an ongoing investigation by the prosecution is undeterred. Previously accused in September 2023 of illicitly sending funds to the Armed Forces of Ukraine, Fedyakina now faces multiple charges. These include operating an illegal crypto exchange business and using Bitcoin to facilitate travel for Russian citizens to Dubai. Some victims also assert they were deceived into investing in a private oil export business that she constructed.
Fedyakina’s lawyers have requested her release on humanitarian grounds due to her pregnancy at the time of her arrest and subsequent childbirth. Nevertheless, courts have countered this plea, indicating that her UAE residence permit makes her a flight risk.