A detained social media influencer could be heading to a Russian penitentiary and staying there for about 10 years to live out her sentence for committing crypto fraud. Valeria Fedyakina, dubbed the “Crypto Queen,” is at the center of multiple charges of large-scale swindling activities that reportedly included funding the Ukrainian military amid the ongoing war between Ukraine and Russia.
Valeria Fedyakina portrayed herself as a crypto entrepreneur to gain the trust of her victims. Image: NX/New York Post
‘Crypto Queen’ Denies The Allegations
Fedyakina refuted the swindling allegations being thrown against her by RIC, claiming she did not commit any fraud, but she told Russian media she supports the invasion of Ukraine by her nation.
Her defense attorneys added that Fedyakina has no history of conviction for any crime, arguing that her client might be a victim of conspiracy.
In September 2023, Russian authorities arrested Fedyakina while she tried to get on board a flight for the United Arab Emirates (UAE). Since then, she has been housed in a pre-trial detention facility with her newborn child.
According to reports, Russian authorities will formally charge her with fraud by November. If convicted, she will possibly spend 10 years in jail.
Authorities arrested Fedyakina in September 2023. Image: Newsflash
$22 Million In Crypto Stolen
According to the investigation of the Russian agency, Crypto Queen was able to steal $22 million of cryptocurrency from investors.
After completing their probe, RIC recommended the filing of criminal charges against her for committing four counts of fraud. The investigative body said that Fedyakina had violated Part 4 of Article 159 of the Criminal Code of the Russian Federation by stealing someone else’s property by deceiving them.
However, Fedyakina maintained her innocence from the accusations by issuing a not-guilty plea for the crimes being associated with her.
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No Tax Authority Registration
The results of the probe showed that Fedyakina’s operations, ‘Bitmama’ and ‘Bitmama Finance’, are operating without proper registration. Authorities found out that she has no registration record as an entrepreneur with the Russian tax authority.
As a result, investigators concluded that Fedyakina may have intended to deceive people and steal their money.
Her Modus Operandi
Reports said that Fedyakina projected herself as a leading crypto expert to gain the trust of her potential victims before executing her plan of getting their cryptocurrency assets.
Investigations showed that aside from Moscow City, the ‘Crypto Queen’ has a global chain of offices in strategic locations such as Monaco, Dubai, Turkey, and Serbia.
Authorities said that to steal her victim’s money, Fedyakina persuaded them to transfer funds to a Dubai crypto account, an evasive move being employed to work around restrictions from traditional banks.
Furthermore, she enticed her victims with a 1% bonus when they transferred money to her for crypto conversion.
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Source: https://bitcoinist.com/from-russia-with-fraud-crypto-queen-diverts-funds-to-ukrainian-army/