A prominent Russian social media influencer, known as the “Queen of Crypto,” has been accused of defrauding investors of over $22 million, with allegations suggesting the funds were funneled to support Ukraine’s military during the ongoing war. The 24-year-old, Valeria Fedyakina, portrayed herself as a cryptocurrency expert, luring victims into trusting her with their fortunes, according to multiple reports.

Elaborate Cryptocurrency Scam

Russian authorities assert that Fedyakina, who used the alias “Bitmama” online, manipulated at least four individuals by presenting herself as a seasoned cryptocurrency expert with operations in major cities like Moscow, Dubai, Monaco, Serbia, and Turkey. Her social media presence, showcasing a lavish lifestyle and apparent success, enabled her to gain the confidence of investors.

According to CryptoNews, she convinced victims to entrust her with large sums of money, promising attractive returns. One particularly significant victim reported losing a staggering $70 million. After a thorough investigation, police revealed that Fedyakina’s total illicit gains amounted to roughly $22 million, accumulated in just two months.

Fraudulent Tactics

Fedyakina reportedly encouraged investors to transfer their funds to Dubai-based cryptocurrency platforms, arguing this would help them circumvent Russian banking restrictions. She enticed her victims further by offering a 1% bonus once the money was converted into crypto. However, the funds soon disappeared, with reports suggesting Fedyakina diverted the money to Ukraine’s armed forces, allegedly supporting their resistance against Russia’s invasion.

Arrest and Legal Proceedings

Fedyakina was apprehended in September 2023 while attempting to leave Russia on a flight bound for the UAE. Authorities placed her in pre-trial detention, where she remains as she awaits formal charges.She might spend up to ten years behind bars if found guilty.

Her legal troubles are compounded by personal circumstances. When Fedyakina was detained, she was seven months pregnant.. Despite her condition, the court denied her a request for house arrest and insisted she serve her detention. After giving birth in a specialized maternity hospital, she was sent back to custody.

Defense’s Response

Fedyakina’s legal team denies the fraud accusations. In a statement to Russian media, they claimed she is a supporter of Moscow’s military actions and has pledged to contribute her own resources to the Russian armed forces. Her defense further alleged that the accusations were part of a conspiracy against her, insisting she had used personal funds to reimburse her clients, whom she claims have failed to repay her.

As the case unfolds, Fedyakina is set to face formal charges, with the potential for a significant prison sentence if the court rules against her. The allegations of using stolen funds to assist the Ukrainian military add a complex layer to a case already steeped in controversy.