Russian Mother and Self-Styled 'Crypto Expert' Jailed Over $23M Bitcoin Scam
Valeria Fedyakina, a Russian mother and self-proclaimed crypto expert, was sentenced to seven years in prison for orchestrating a pyramid scheme that defrauded investors of $23 million in Bitcoin within 60 days in 2023. Operating under the name "Bitmama," she falsely claimed to facilitate money transfers abroad using cryptocurrency to evade Western sanctions. Instead, she siphoned off clients' funds, leading to one of Russia's largest crypto fraud cases. The Moscow court ordered her to pay $23 million in restitution. Fedyakina was arrested while attempting to flee to the UAE and gave birth in prison. The case highlights the exploitation of regulatory gaps in cryptocurrency, particularly in jurisdictions like the UAE, and reflects a broader trend of using crypto for illicit activities in Russia, including funding intelligence operations.
