Valeria Fedyakina, a social media influencer known as the “Crypto Queen,” may soon find herself in a Russian penitentiary for up to a decade due to accusations of crypto fraud. Allegedly, her activities have even touched on the sensitive geopolitical conflict between Ukraine and Russia, with claims of her funding the Ukrainian military.
‘Crypto Queen’ Denies The Allegations
Fedyakina has firmly denied the fraud allegations leveled against her by the Russian Investigative Committee (RIC), maintaining her innocence in the face of serious charges. Interestingly, she has publicly expressed support for Russia’s actions in Ukraine, adding a layer of complexity to her case. Her legal team argues that she has a clean record and might be the target of a conspiracy.
In a dramatic turn of events, Fedyakina was apprehended by Russian authorities in September 2023 while attempting to board a flight to the United Arab Emirates (UAE). Since her arrest, she has been held in a pre-trial detention facility alongside her newborn child. The Russian authorities are expected to formally charge her with fraud by November, which could result in a 10-year prison sentence if she is convicted.
Investigation Reveals $22 Million In Crypto Stolen
The investigation conducted by Russian agencies revealed that Fedyakina allegedly embezzled $22 million worth of cryptocurrency from investors. Following this discovery, the RIC has recommended prosecuting her on multiple counts of fraud. They allege that Fedyakina breached Part 4 of Article 159 of the Russian Criminal Code, which pertains to the unlawful acquisition of property through deception.
Despite these serious charges, Fedyakina has entered a not-guilty plea, steadfastly denying any involvement in the fraudulent activities attributed to her.
Lack of Tax Authority Registration
Further investigations revealed a significant oversight in Fedyakina’s business operations. Her ventures, ‘Bitmama’ and ‘Bitmama Finance’, were found to be operating without proper registration with the Russian tax authorities. This crucial detail led investigators to conclude that her operations were likely designed with the intent to deceive and defraud investors.
Her Modus Operandi
Fedyakina reportedly established herself as a prominent crypto expert to gain the trust of her victims. Her operations extended beyond Moscow, with offices strategically located in Monaco, Dubai, Turkey, and Serbia, suggesting a sophisticated network.
Authorities believe that she convinced her victims to transfer funds to a Dubai-based crypto account, cleverly circumventing traditional banking restrictions. As an added incentive, she promised a 1% bonus for those who entrusted her with their money for cryptocurrency conversion, making her scheme appear even more lucrative.
