Russian ‘Crypto Queen’ Thrown into Gulag Amid Multi-Million Dollar Scam Allegations Linked to Ukraine
In a shocking twist of crypto intrigue, Valeria Fedyakina, dubbed the “Russian Crypto Queen,” has been imprisoned in a Russian gulag after being accused of orchestrating an approximate $22 million pyramid scheme allegedly designed to fund Ukraine’s military. The pregnant crypto mogul, known online as “Bitmama,” reportedly amassed her millions in just two months before Russian authorities apprehended her.
Fedyakina, now a mother, was first arrested in September 2023 after a year-long investigation by the Kremlin, which claims the scheme funneled money to help Ukraine’s armed forces in their ongoing war against Vladimir Putin’s invasion. Her lawyers, however, deny the allegations, insisting she had no intention of supporting Russia’s enemy and calling the charges a “crypto conspiracy.”
The scam targeted a small but wealthy group of investors, with four victims allegedly losing a staggering $73 million in less than 60 days. Prosecutors claim Fedyakina lured her victims into her scheme by presenting herself as a cryptocurrency expert and promised huge returns through investment in digital assets. Her social media accounts showcased her purported global reach, with “offices” in Moscow, Dubai, Monaco, Serbia, and Turkey, adding to her façade of legitimacy.
According to Russian investigators, Fedyakina told investors they could sidestep banking restrictions by funneling money through her, and she promised a 1% bonus once the funds were converted to cryptocurrency. However, the money vanished soon after the transactions were completed, leaving her victims empty-handed. Authorities assert that the funds were redirected to Ukraine’s military efforts, a claim that has added a political charge to the case.
Fedyakina’s arrest was swift and dramatic. She was apprehended while attempting to flee Russia for the United Arab Emirates, six months pregnant at the time. Despite pleas for house arrest, she was placed in pre-trial detention. In a rare reprieve, she was allowed to briefly leave the gulag to give birth to her daughter in a maternity hospital, but was soon returned to her cell once she recovered.
Fedyakina’s defense team maintains her innocence, asserting that she has always supported Russia’s invasion of Ukraine. They claim she is herself a victim of the broader crypto underworld and are working to discredit the Kremlin’s narrative. In a bold statement, her lawyers have even suggested that if released, Fedyakina would be willing to donate funds to Russia’s war efforts.
Formal charges are expected to be brought against Fedyakina in November, and if convicted, she faces up to 10 years in prison. Her case has captivated both the financial world and political observers, as it ties together the murky worlds of cryptocurrency, war funding, and international intrigue.
Fedyakina’s case comes just weeks after another woman, 24-year-old Viktoria Mukhametova, was sentenced to 12-and-a-half years in a penal colony for allegedly selling Russian tank blueprints to Ukraine. These back-to-back cases of women facing severe punishments in Russia have sparked international attention, raising questions about the Kremlin’s handling of both internal dissent and the cryptocurrency world.
For now, the crypto queen sits behind bars, awaiting her fate as Russia continues to clamp down on those it deems traitors or scammers. Whether a crypto mastermind or a victim herself, Valeria Fedyakina’s story is far from over.
Digital Assets Desk
