The so-called ‘cryptocurrency queen’ is expected to be sentenced in Russia
The main person involved in the case is Valeria Fedyakina, who positioned herself as a specialist in the field of cryptocurrencies. She had representative offices in several countries, including Moscow, Dubai, Monaco, Serbia and Turkey. In September 2023, she was detained for her activities under the pseudonym ‘Bitmama’, as reported by the New York Post.
According to the investigation, Fedyakina raised about $22 million from investors in just two months. She persuaded investors to transfer funds to Dubai-based cryptocurrencies to circumvent banking restrictions. As an incentive, investors were promised a 1% bonus after converting their money into crypto assets.
According to investigators, Fedyakina could have used the funds to support the Ukrainian Armed Forces, which are resisting the Russian invasion. She is due to be formally charged in November, and if convicted, she faces up to 10 years in prison.
Valeriya Fedyakina’s defence categorically denies the fraud charges. Moreover, her representatives have stated in the Russian media that she supports the Russian Federation, participates in the war against Ukraine and is even ready to financially support the Russian army. The lawyers also claim that the woman was the victim of a conspiracy, and that her personal funds were used to pay off clients who, according to Fedyakina, never repaid her debts.