Russian Woman Charged in $22 Million Crypto Fraud Case

Valeria “Bitmama” Fedyakina, a Russian influencer, faces 10 years in prison for $22 million crypto fraud. Law enforcement previously suspected her of treason but recently charged her with economic crimes alone.

Fedyakina allegedly defrauded at least four Russian businessmen with a phony cross-border payment scheme.

Cross-Border Payments Fraud

According to a recent report from New York Post, Russian influencer Valeria “Bitmama” Fedyakina is nearing a trial for $22 million in alleged crypto fraud. She faces 10 years in prison if found guilty. Law enforcement officials arrested her in September 2023, and the state’s case relies on the testimony of four defrauded businessmen.

Read More: Top Cryptocurrency Scams in 2024

The center of Fedyakina’s scam operation was crypto’s use in cross-border payments, which have become particularly popular in Russia. The country is currently under international sanctions since the Ukraine invasion, and cryptocurrency can help private and institutional users evade these sanctions. Fedyakina allegedly posed as a facilitator for this exact use case.

According to these four defrauded individuals, Fedyakina portrayed herself as an international entrepreneur and investor who could help Russian businessmen move money abroad via crypto. She also promised to “sweeten the deal” by claiming that she would not charge for this service, but actually pay extra thanks to an convoluted energy scheme. Instead, she stole everything.

Reportedly, her crimes went far further, and Fedyakina attempted to fund Ukraine’s war effort with these assets. This claim has appeared in previous coverage, and state prosecutors apparently suspected her at one point. However, a more recent story from Russian state media outlet TASS quotes extensively from court documents.

“The investigative body has completed the investigation of the criminal case against Valeria Sergeevna Fedyakina, who committed fraud, that is, theft of someone else’s property by deception, on an especially large scale. In the final version, she was charged with committing four episodes of fraud, and four people were recognized as victims in the case,” it quoted.

In short, there’s no mention of high treason. TASS claims that Fedyakina was pregnant at the time of her arrest and has since given birth.

She may be able to request a lighter or deferred sentence on these grounds. This sort of leniency would not be appropriate for someone directly aiding an enemy war effort.

Read More: Crypto Social Media Scams: How to Stay Safe

Still, if nothing else, Fedyakina’s case represents a particular danger in the crypto space. Sophisticated phishing efforts are on the rise, and her operation was based on a very real use case in Russia.

Scammers often have a legitimate outward appearance and target desperate people. Several security solutions can help minimize users’ personal risk.