A jailed social media influencer may be headed to a Russian prison for up to 10 years to serve his sentence for crypto fraud. Valeria Fedyakina, nicknamed the “Queen of Crypto,” is among a number of fraud cases that reportedly involve financing the Ukrainian military during the ongoing war between Ukraine and Russia.
Valeria Fedyakina portrayed herself as a crypto entrepreneur to gain the trust of her victims. Image: NX/New York Post
‘Crypto Queen’ Denies Allegations
Fedyakina dismissed the fraud allegations leveled against him by the RIC, saying he did not commit fraud, but told Russian media that he supported his nation’s invasion of Ukraine.
His defense attorneys added that Fedyakina has no criminal record, saying his client could be the victim of a conspiracy.
In September 2023, Russian authorities arrested Fedyakina while trying to board a flight to the United Arab Emirates (UAE). Since then, she has been detained in a pre-trial detention center with her newborn child.
According to reports, Russian authorities will formally charge him with fraud in November. If convicted, he could face up to 10 years in prison.
Authorities arrested Fedyakina in September 2023. Image: Newsflash
$22 Million In Crypto Stolen
According to the investigation of the Russian agency, the Crypto Queen managed to steal $ 22 million of cryptocurrency from investors.
After completing its investigation, the RIC recommended that criminal charges be filed against them for committing four counts of fraud. The investigative body said that Fedyakina violated Part 4 of Article 159 of the Criminal Code of the Russian Federation by stealing another person’s property by deceiving him.
However, Fedyakina maintained her innocence in her prosecution by pleading not guilty to charges related to her.
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No Tax Authority Registration
The results of the investigation showed that Fedyakina’s operations, ‘Bitmama’ and ‘Bitmama Finance’, operate without proper registration. Authorities discovered that he had no record of registering as a businessman with the Russian tax authorities.
As a result, the investigators concluded that it is possible that Fedyakina intended to deceive people and steal their money.
His Modus Operandi
Reports said that Fedyakina presented himself as a leading crypto expert in order to gain the trust of his potential victims before carrying out his plan to acquire their cryptocurrency assets.
The investigation showed that apart from the City of Moscow, the ‘Crypto Queen’ has global offices in strategic locations such as Monaco, Dubai, Turkey, and Serbia.
Authorities said that in order to steal his victim’s money, Fedyakina persuaded them to transfer the funds to a Dubai crypto account, a move used to circumvent traditional banking restrictions.
In addition, he enticed his victims with a 1% bonus when they transferred crypto money to him.
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