Influencer Faces 10 Years for Alleged $22 Million Crypto Scam in Russia

A Russian influencer, is facing a possible 10-year prison term for an alleged $22 million cryptocurrency fraud scheme.

Initially suspected of treason, Valeria “Bitmama” Fedyakina has since been charged solely with economic crimes.

Accusations state that Fedyakina defrauded at least four Russian businessmen using a fraudulent cross-border payment scheme. Her operation capitalized on the growing trend of cryptocurrency usage in Russia, especially in light of international sanctions imposed after the Ukraine invasion, enabling her to position herself as a facilitator for overseas fund transfers.

The businessmen claimed she misrepresented herself as an international entrepreneur capable of helping them move money via cryptocurrency. She even assured them that her service would be free of charge and that she could provide extra funds through a complicated energy scheme, but ultimately, she stole their investments.

Additionally, there are allegations that her fraudulent activities extended to attempts to fund Ukraine’s war effort, which initially led to treason suspicions. However, more recent reports focus on four counts of large-scale fraud, without any mention of treason.

Reports indicate that she was pregnant when arrested and has since given birth, potentially allowing her to seek a lighter sentence. This case underscores the rising sophistication of scams within the cryptocurrency space, where fraudsters often disguise themselves as legitimate entities, targeting vulnerable individuals. Users are advised to adopt security measures to safeguard against such threats.