Russian Influencer Faces 10 Years for $22M Crypto Fraud

Valeria "Bitmama" Fedyakina, a well-known Russian influencer, is facing up to 10 years in prison for allegedly defrauding businessmen out of $22 million through a fake cryptocurrency payment scheme. While there were earlier suspicions of treason, the current charges are focused solely on economic crimes related to fraud.

Fedyakina is accused of deceiving four Russian businessmen by promising them cross-border payment services using cryptocurrency. She allegedly portrayed herself as an international investor, claiming she could help these individuals move funds abroad, a service that has become more attractive to Russians due to international sanctions following the Ukraine invasion.

The influencer promised to provide the service for free, even claiming she could offer them additional profits through a complex energy-related scheme. Instead of delivering on her promises, Fedyakina is said to have stolen the money. The case against her relies heavily on the testimonies of the businessmen she allegedly defrauded.

There have been previous reports suggesting Fedyakina attempted to use the stolen assets to fund Ukraine’s military. However, recent statements from Russian state media and court documents do not include charges of treason. The investigation has concluded that she is only being charged with fraud on a large scale.

According to the court, Fedyakina is charged with four separate counts of fraud, and each of the four businessmen is recognized as a victim in the case. The more severe allegations of treason were dropped, and the focus now is entirely on the financial crimes she allegedly committed.

Fedyakina was reportedly pregnant at the time of her arrest in September 2023 and has since given birth. There is speculation that her recent motherhood could lead to a reduced or delayed sentence, as such leniency might be considered due to her personal situation. This type of compassion would likely not be available if she had been directly involved in aiding an enemy war effort.

Fedyakina's case highlights the growing risks in the cryptocurrency space, particularly as phishing scams and fraudulent schemes become more sophisticated. Her operation was based on a real and relevant use case in Russia, where crypto is often seen as a tool for bypassing sanctions.

The case serves as a reminder that scammers can present themselves as legitimate and take advantage of those in desperate circumstances. To avoid falling victim to such schemes, users should consider utilizing security solutions to reduce personal risks when dealing with cryptocurrencies.