Russia’s ‘Crypto Queen’ Accused of Large-Scale Crypto Fraud

Valeria Fedyakina, known as the “Crypto Queen” and “Bitmama,” is under investigation for orchestrating cryptocurrency fraud operations in Russia.

Reports suggest she managed large-scale cash transfers using Bitcoin, allegedly taking physical cash from clients and transferring the funds abroad, primarily to Dubai. The Russian TV channel Vesti aired an exposé showing videos reportedly taken by Fedyakina displaying suitcases full of cash linked to her operations.

Crypto-Powered Cash Transfers to Dubai

Authorities claim Fedyakina offered crypto-based exchange services, with one anonymous victim stating, “She told me: ‘I have people who work in armored cars. They come, and they take cash from you. They bring it to my office. You hand over the money here, and you receive it in Dubai.’” The report also showed how large sums of cash, possibly up to $1 million, could fit into suitcases allegedly delivered to her office for crypto exchanges.

Fedyakina reportedly persuaded wealthy clients to use her services to transfer money abroad, using Bitcoin as a remittance tool. Prosecutors suspect she defrauded multiple clients, with one victim claiming he handed over 6.7 billion rubles (around $70 million) in cash to Fedyakina’s exchange services.

Fraudulent Investment Schemes

In addition to the cash transfers, Fedyakina is accused of convincing clients to invest in fake projects, including hotels in Dubai and oil-buying ventures. One anonymous individual told Vesti that Fedyakina asked him to invest $8 million in an oil-related project, saying, “Come on. Let’s buy oil ourselves. Let’s export it ourselves. And then let’s sell it by ourselves.”

Fedyakina presented seemingly authentic documents and PR materials to create the appearance of legitimacy. Ivan Mironov, a lawyer for one of the victims, stated, “Fedyakina used official-looking documents and serious-looking PR materials […]. She wanted to give the impression she was the kind of financial genius that could turn over a billion [rubles] in a day.”

Fedyakina has been in custody for over a year, charged with large-scale cryptocurrency investment fraud. Her detention has been extended until December 15, 2024, while her legal team reviews the case and prepares her defense. Despite being pregnant when first arrested, the court denied her release, and she later gave birth while in custody. Russian authorities have moved her to a special cell equipped with childcare facilities.

The “Crypto Queen” could face up to 10 years in a penal colony if convicted.

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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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