Crypto Scam Queen ‘Bitmama’ Sentenced to 7 Years in Russia After Stealing $23M in Bitcoin from Investors — Can Crypto Gurus Be Trusted?

Crypto Star-Turned-Fraudster Sentenced After $23 Million Bitcoin Scam Explodes In Russia

Luxury hotels, piles of cash, and promises of easy returns were the hallmarks of a crypto empire that crumbled within months.

Valeria Fedyakina, a 30-year-old from Simferopol known to her online followers as “Bitmama,” has been handed a seven-year sentence in a Russian penal colony for orchestrating one of the country’s most notorious cryptocurrency frauds to date.

She was found guilty of scamming investors out of 2.2 billion rubles—around $23 million at the time—through a scheme that ran full speed for just two months in 2023.

How A Self-Styled Crypto Expert Built Trust

Fedyakina presented herself as a crypto consultant with international connections, pitching high-net-worth clients on a scheme to move their money offshore and convert rubles into Bitcoin, mainly through Dubai.

Using her personal brand “Bitmama Finance,” she promised clients an easy way around Western sanctions—claiming their funds would be quickly converted into digital assets outside Russia.

Investors were offered a modest 1% bonus on each transaction, a tactic that helped her appear legitimate and trustworthy.

The combination of polished social media presence and insider language attracted a loyal group of clients.

The Setup: Millions Moved Through Hotel Suites

Much of the operation was carried out in person.

According to the Russian Investigative Committee, Fedyakina met with clients in upscale hotels across Moscow where deals were sealed over briefcases of cash.

Her assistant later testified that daily inflows started at $2–3 million and quickly rose to $15 million.

However, instead of investing the funds as promised, Fedyakina redirected the money into her personal crypto wallets in the UAE.

To her victims, she claimed the funds were being channelled into oil, gold, and other commodity trades.

The scheme collapsed when the first victims raised suspicions, and the fraud came to light just months after it began.

Attempted Escape And Border Arrest

By September 2023, Russian authorities had identified four victims who had collectively lost 2.2 billion rubles.

As the scheme began to unravel, Fedyakina attempted to flee to the United Arab Emirates.

She was intercepted at the border and taken into custody while six months pregnant.

She later gave birth in a specialised maternity hospital before being transferred to Moscow’s SIZO No. 6 detention facility with her newborn daughter.

Prosecutors Push For Harsher Sentence

During her trial at the Presnensky District Court in Moscow, prosecutors pushed for a 10-year sentence under Russian fraud statutes.

The final decision on 26 June 2025 resulted in a reduced sentence of seven years in a penal colony and an order to repay the full 2.2 billion rubles to her victims.

Adjusted for inflation, that sum is now closer to £20 million.

Allegations Of Funding War Raise Tensions

While the fraud was already high-profile, the case took a geopolitical turn when Kremlin-aligned media suggested that part of the stolen funds may have ended up supporting the Ukrainian military.

These claims were reportedly based on suspicious transactions involving crypto wallets and accounts in Dubai.

However, no verifiable public evidence has been released, and the allegations remain unconfirmed.

Fedyakina denied any connection to Ukraine and maintained that all funds were intended for legitimate crypto use.

Her defence accused authorities of turning the case into a political weapon and vowed to appeal the sentence.

Crypto Influencers Under Growing Scrutiny

The scandal has reignited debate over the role of crypto influencers, particularly in loosely regulated regions.

Fedyakina had gained credibility through her Telegram and Instagram presence, where she promoted herself as a bridge between traditional finance and the digital asset world.

Her arrest and sentencing have become a cautionary tale within Russia’s crypto circles, which are increasingly under watch as the country opens the door to regulated digital finance.

In May 2025, the Bank of Russia began allowing certain financial institutions to offer crypto-linked derivatives to qualified investors—a move that signals a more formal stance toward digital assets, though physical settlement in crypto remains banned.

The Fedyakina case has left many questioning how far others like her may have already gone under the radar.