Russia’s ‘Crypto Queen’ Charged With Stealing ‘Bitcoin and Fiat Worth $21.3M’

Russia’s self-styled “crypto queen” Valeria Fedyakina has been charged with “stealing” Bitcoin (BTC) and foreign currency “worth $21.3 million.

The Russian state-run news agency TASS reported that prosecutors say Fedyakina, also known as “Bitmama,” offered her clients “investments in crypto” with “the promise of high returns.”

But, prosecutors allege, Fedyakina failed to deliver on her promises, with her “victims’” funds “disappearing” soon after.

Russia’s ‘Crypto Queen’ Facing Fresh Charges

Russia’s “Crypto Queen” built a sizeable following on social media, where she regularly posted images and photos of herself living an opulent lifestyle.

On Instagram, she claimed to be a “crypto broker” for businesses, and used expressions such as “In Bitcoin we trust.”

Prosecution officials say that Fedyakina “embezzled large sums of money,” including UAE dirhams and Bitcoin.

A “law enforcement agency” spokesperson told the news agency:

“Fedyakina is suspected of embezzling large sums of money, including dirhams and Bitcoin, using illicit schemes to lure investors. The case materials state that the damages in just one instance amounted to about 800 million rubles [$7.8 million]. In total, these damages total at least 2.2 billion rubles [around $21.3 million].”

A court has reportedly ordered bailiffs to freeze Fedyakina’s bank accounts, crypto wallets, and other assets to “possibly compensate for the damage.”

Fedyakina denies any wrongdoing. The new charges mean she will face prosecution for allegedly violating Article 159 of the Russian Criminal Code.

The code dictates that the maximum penalty for violating this article is “up to 10 years of imprisonment and a fine of up to 1 million rubles [$9,700].”

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‘Bitmama’ Denies Guilt

Fedyakina’s legal team says she is innocent of all charges brought against her, including the recent embezzlement case. However, the news agency claims the prosecution’s investigation “is ongoing.”

Fedyakina was first jailed in September 2023, when she was briefly accused of sending funds to the Armed Forces of Ukraine.

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Oil Business Claims

Investigators have since accused her of running an illegal crypto exchange business, using BTC and other tokens to help Russian citizens to Dubai.

“Victims” have also claimed that she duped them into investing in a private “oil export” business.

Media outlets have unearthed what appear to be “Bitmama”-branded promotional materials explaining how “investors” could pool their money and BTC to buy an oil tanker.

Her defense team has asked Moscow courts to release her on humanitarian grounds. Fedyakina was pregnant at the time of her arrest and gave birth in custody.

But courts have rejected this request, noting that she has a UAE residence permit and thus “poses a flight risk.”