A glamorous Russian influencer, known as the 'Queen of Crypto,' has been thrown into a Russian gulag while pregnant after being accused of scamming investors out of £17 million. Valeria Fedyakina, 24, allegedly misled her victims by claiming she was funding the Ukrainian army, while in reality, she was running a pyramid scheme.
Key Takeaways
- Valeria Fedyakina, dubbed the 'Queen of Crypto,' is accused of scamming £17 million from investors.
- She allegedly posed as a cryptocurrency expert and promised high returns on investments.
- Fedyakina was arrested while attempting to flee Russia and is currently in detention after giving birth.
The Allegations Against Fedyakina
Fedyakina, who operated under the alias Bitmama, portrayed herself as a cryptocurrency expert with offices in multiple countries, including Moscow, Dubai, and Monaco. According to Russian authorities, she built her wealth in just two months through a pyramid scheme that targeted four individuals.
Victims reported losing staggering amounts, with one claiming a loss of nearly £54 million. The investigation revealed that Fedyakina convinced investors to transfer their funds to Dubai to circumvent banking restrictions, promising a 1% bonus on their investments once converted to cryptocurrency.
The Scheme Unraveled
The elaborate scam involved enticing investors with promises of quick returns from a supposed oil export scheme. However, the funds quickly disappeared, allegedly funneled to support Ukraine's armed forces in their conflict against Russia.
Fedyakina was arrested in September 2023 while attempting to flee to the United Arab Emirates. Investigators confirmed losses totaling £17 million from her four victims, all occurring within a 60-day period.
Legal Proceedings and Current Status
The Investigative Committee of Russia has accused Fedyakina of having criminal intent to defraud investors under the guise of legitimate business activities, including oil and mineral trading. If convicted, she faces up to ten years in prison.
Despite being six months pregnant at the time of her arrest, the court denied her a lighter sentence of house arrest. After giving birth in a special maternity hospital, she was returned to detention, where she remains.
Fedyakina's defense team has denied the fraud allegations, claiming she supports Russia's military efforts and is a victim of a larger crypto conspiracy. They assert that she is willing to donate funds to support the Russian military if released.
Conclusion
The case of Valeria Fedyakina highlights the growing concerns surrounding cryptocurrency scams and the potential for exploitation in the digital currency space. As investigations continue, the outcome of her legal battle remains uncertain, but it serves as a cautionary tale for investors in the volatile world of cryptocurrency.
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