A prominent Russian influencer widely known as the “Queen of Cryptocurrency” is under investigation for allegedly defrauding investors of $22 million.
According to various reports in the Russian media, Valeria Fezyakina, who made a name for herself as “Bit Mom,” is accused of running a pyramid scheme that ensnared multiple victims in just two months. There is.
The four victims lost $22 million.
The 24-year-old was arrested just over a year ago after a lengthy investigation prompted by numerous complaints from investors. According to reports, some of her victims claim to have lost an astonishing amount of money, with some even stating that she stole about $74 million from him.
But so far, the official investigation has only confirmed a total of just over $22 million in losses in various currencies, including cryptocurrencies, by the four main victims.
Detectives allege Fejakina posed as a cryptocurrency expert and claimed to have global offices in multiple cities, including Dubai, Monaco and Moscow. This façade helped her gain the trust of potential investors, who convinced her to transfer funds under the pretext of investing in a lucrative cryptocurrency venture.
Bitmama reportedly promised investors a 1% return on their funds, which they said would be converted into cryptocurrency. These assets are becoming increasingly popular as Russia seeks ways to circumvent tough economic sanctions.
The scheme allegedly involved telling victims that their funds would be transferred to Dubai to circumvent banking regulations. Fejakina’s conspiracy was not limited to cryptocurrencies. One of the victims told investigators how she lured him into investing millions of dollars in an oil export project by promising large profits in an unreasonably short period of time.
The proceeds of the fraud were allegedly used to fund the Ukrainian military.
As the investigation progressed, law enforcement officials discovered that the influencer was allegedly raising money to fight Russian aggression and had directed large sums of money to support military operations in Ukraine.
But despite the seriousness of the allegations, her lawyers insist she never intended to deceive anyone. They have continually denied claims of fraud, instead stating that their customers are victims of a broader unspecified conspiracy within the crypto space.
Mr Fezyakina also claimed loyalty to the Russian cause and reportedly said he would support the Russian military if released.
Her legal problems intensified when she attempted to flee Russia to the United Arab Emirates (UAE) shortly after her arrest. Given that she was six months pregnant at the time, the case received significant attention in the media, forcing authorities to temporarily place her under more lenient house arrest.
However, shortly after giving birth in a special birthing facility, Fejakina was returned to detention, where she reportedly faced harsh conditions.
Prosecutors plan to formally indict her in November, and if convicted, she could be sentenced to 10 years in prison. They not only accused her of facilitating illegal cryptocurrency transactions, but also of orchestrating several scams targeting individual investors and large corporations.
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