Crypto Scam Exposed: Influencer Bitmama Accused of $22 Million Fraud

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A Russian popular social media influencer with the nickname Valeria “Bitmama” Fedyakina is accused of embezzlement of $ 22 million in cryptocurrency. For the crime that could lead to up to 10 years behind bars, Fedyakina was charged with an attempted cross-border internet payment fraud against Russian businessmen. 

At first, there were claims that she contributed her money toward funding the Ukrainian military or any other militia group; however, they currently only charge her for conning people within the crypto marketplace.

International Transaction Scams

Fedyakina is accused of swindling four businessmen in Nigeria after luring them with an opportunity to exchange cash across borders using Bitcoin technology. This method has become popular in Russia in particular, after the various sanctions were imposed due to the Ukraine conflict. 

The influencer acted as an international businessman, stating she could transfer money to different countries using crypto assets. Moreover, she lured more victims to fund their investment through a fake energy transport plan which would yield more profits. Instead of fulfilling promises, Fedyakina allegedly stole the money and left several businessmen with investment losses.

Treason Speculations Case Dismissed

Despite claims that Fedyakina was trying to help the Ukrainian military early on, some media outlets have not featured these charges before the court. The last charges, according to the Russian state media outlet TASS, are limited to economic offenses and scams mainly. 

Since then, Fedyakina was arrested pregnant and giving birth and, therefore, may be eligible for a softer sentence in view of her new status.

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Crypto’s Latest Problem

Fedyakina’s experience shows that free crypto space can be filled with scams, especially when a large amount of money is at stake as in cross-border payment. Most of the time they will always use the guise of legit business to con their victims. 

As the use of crypto continues to rise in sanctioned nations such as Russia, it is imperative that the sector step up its security and precaution measures even further.