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Tim Alper
Author
Tim Alper
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The self-styled Russian “crypto queen” Valeria Fedyakina, aka “Bitmama,” will face multiple counts of “large-scale” fraud.
Fedyakina denies the charges, and her legal team has asked a court to release her – and her newborn daughter – from a pre-trial detention center.
Russian ‘Crypto Queen’ – Four ‘Victims’ Come Forward
According to the state news agency TASS, the Russian Investigative Committee has completed its investigation into Fedyakina, a social media star with a sizeable, crypto-keen following.
The news agency said that the committee has accused her of causing “more than 2.2 billion rubles (around $23 million) in damages.”
Four “victims” are named in the committee’s legal documents, although the media has withheld these individuals’ identities.
The committee further claimed that Fedyakina carried out illegal actions using “various currencies, including cryptocurrency.”
And the committee noted that Fedyakina carried out “over-the-counter crypto transactions.” Media outlets claimed that she primarily used Bitcoin (BTC) to send funds to and from Dubai.
The body has accused her of “providing an indefinite number of persons with services for currency conversion.”
She is also accused of using crypto to make “international money transfers without using bank accounts.”
The “victims” said they tried to use her services to send money between Moscow and Dubai.
‘Illegal Oil Exporting Business’
“Fedyakina had a criminal intent to steal money or cryptocurrency by deceiving an indefinite number of people. She did so under the guise of investing in her activities in the transportation and purchase and sale of oil, oil products, gold, and other minerals.”
Russian Investigative Committee
The committee further alleged that Fedyakina spread “knowingly false information about a crypto-powered investment program.”
The social media star posted frequently on Instagram and other platforms, showcasing her jet-setting lifestyle.
She reportedly “guaranteed” investors “income in the shortest possible time,” and asked acquaintances to “invest fiat or cryptocurrency in the project.”
Legal Team Says Flight Risk Talk Is Unfounded
Per a separate TASS report, Fedyakina’s legal team says the prosecution’s arguments that she represents a “flight risk” are “untenable.”
The team claimed that her UAE residence permit had expired in February this year, and pointed out:
“Fedyakina has no previous convictions, is a citizen of the Russian Federation, and is in a pre-trial detention center with her newborn daughter.”
A major Russian media outlet has alleged that Fedyakina took “suitcases full of cash” from clients who used her “crypto exchange services” to send money abroad.
The outlet also reported that she convinced many of her clients to invest in fraudulent projects, including an oil export project.
The Moscow City Court has thus far ruled that Fedyakina must stay in custody. An appeal hearing date is “yet to be set.”
“Fedyakina did not intend to carry out any of the actions she had promised to do so in the interests of the people who [gave her money and crypto]. She planned to use the money or cryptocurrency she received at her own discretion. She essentially stole it.”
Russian Investigative Committee
Former Friend Now a Key Witness?
Media outlets have reported that one of the key victims and witnesses in the case is a former friend of Fedyakina’s.
This individual, outlets claim, initially “helped” the so-called Russian crypto queen “post false information about her activities on social media networks.”
But this individual later claimed to have realized that they too were being “deceived.”
Fedyakina was first arrested at the end of September last year. She was pregnant at the time of her arrest and gave birth in custody.
She was initially thought to have sent part of the funds she raised to the Armed Forces of Ukraine.
However, the latest charges make no mention of this, indicating the commission no longer believes this to be the case.
