Russian Crypto influencer funnels investor funds to Ukrainian troops amid war

A glamorous Russian crypto influencer, also known as the "Queen of Crypto", is now facing multiple charges of large-scale fraud after she scammed unsuspecting investors out of over $22 million that she then sent to Ukrainian troops amid the ongoing war.

Russian authorities revealed that Valeria Fedyakina portrayed herself as a cryptocurrency expert on social media to gain the trust of at least four victims whom she stole millions from.

Crypto Queen pretending to be a crypto expert

The influencer, who went by "Bitmama" on social media, pretended to be a cryptocurrency expert with offices in Moscow City, Dubai, Monaco, Serbia and Turkey and convinced her victims to trust her with their millions.

She also used her social media presence to showcase a lavish lifestyle, promising investors' income in the shortest possible time.

However, the cash would quickly vanish as the crypto queen funneled the money into Ukraine's armed forces to help them fight against the Russian invasion.

The Russian investigative committee said

"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."

The committee also revealed that the crypto queen, through her social media posts, spread knowingly false information about a crypto-powered investment program. Her victims reported losing massive sums of money, including one who said he lost $70 million.

According to reports from TASS, it was reported that Fedyakina managed to steal about $2.2 billion rubles (around $23 million). The committee has named four victims, though their identities remain confidential.

The charges against Fedyakina allege that she conducted illegal financial activities involving various currencies, including cryptocurrency, and specifically over-the-counter crypto transactions.

Police say Fedyakina carried out the scam by convincing investors to transfer their money to Dubai crypto to avoid banking restrictions. The victims said she then promised them a 1% bonus on the cash they sent her once it had been converted into crypto.

Fedyakina’s arrest

Fedyakina was arrested in September 2024 while trying to leave Russia on a flight to the UAE and placed in pre-trial detention. She is expected to be formally charged next month and faces up to 10 years in prison if convicted.

Fedyakina’s legal team has challenged the prosecution’s argument that she is a flight risk, citing that her UAE residency permit expired earlier this year. Valeria also claimed that she was heavily framed and drowned, and that she is just a pawn in the hands of more experienced players.

During her arrest, she was six months old. But the courts refused to give her a lighter punishment of house arrest. She was forced to return to dentition after giving birth in a special maternity hospital.

Reports have also surfaced suggesting that Fedyakina handled large sums of cash for clients using her crypto exchange services and allegedly persuaded many to invest in fraudulent projects, including an illegal oil exporting business. A former friend, who initially supported her and helped promote her activities online, has now become a key witness in the case, claiming they too were deceived by Fedyakina’s schemes.