Russia’s ‘Crypto Queen’ Sentenced to 7 Years in Prison After $25 Million Bitcoin Scam Linked to Ukraine
Valeria Fedyakina, once dubbed the “Crypto Queen of Russia,” has been sentenced to seven years in one of Moscow’s toughest prisons after she was accused of defrauding $25 million in Bitcoin and funneling some of it to the Ukrainian Defense Forces an act that the Russian government viewed as a betrayal.
Sophisticated Cryptocurrency Scam Targets Wealthy Russians
In the space of two short months, Valeria also known by her moniker “Bitmama” defrauded four wealthy Russian businessmen of a total of 2.2 billion rubles (~$25 million) through a well-crafted cryptocurrency investment scheme.
She convinced her victims that their money would be transferred to a secure trading platform in Dubai, bypassing Western sanctions. In return, they would receive an additional 1% bonus, without having to make any cryptocurrency transactions everything would be processed overseas.
Luxury image, attractive promises and international money laundering network
Valeria attracted attention thanks to her glamorous, successful social media image, with expensive dinners at 5-star hotels in Moscow and private meetings with the elite. Her assistants even made $15 million in just a few hours, counting cash right in luxury hotels.
Once the money was transferred to the UAE, it would be laundered through oil, minerals and gold trading, and then transferred to the Ukrainian military a move that angered the Kremlin.
Pregnant arrest and the price to pay
In September 2023, when she was 6 months pregnant, Valeria tried to flee to Dubai but was arrested in Russia. She was held in a special maternity hospital, then transferred to the SIZO No. 6 prison, which is notorious for its harsh conditions.
At the trial in Moscow’s Presnensky district, she was sentenced to seven years in prison and ordered to repay all the money she had embezzled. However, prosecutors said the cash had “disappeared” the strongest assumption being that it had been transferred to the Ukrainian Ministry of Defense.
Cryptocurrency: A Support Tool and a Dark Side of Modern Warfare
The event raises profound questions about the role of cryptocurrencies in global conflicts. Over the past four years of fighting, Ukraine has been actively using cryptocurrencies to raise funds quickly, bypassing traditional financial channels.
However, the decentralized, hard-to-trace nature of blockchain also facilitates manipulation and money laundering. While Fedyakina was convicted, it remains unclear how much of the money actually went to the Ukrainian military and how much was misappropriated to support her lavish lifestyle.
A wider perspective: When Bitcoin became a strategic tool
According to a recent Reuters report, Russia has used Bitcoin rewards to incentivize espionage in Europe, showing that cryptocurrencies are not just financial assets, but can also become strategic tools in an age of high-tech conflict.
Conclusion
The case of Valeria Fedyakina is not just a story of a massive fraud, but also a mirror of the increasingly complex role of cryptocurrencies in modern geopolitics where Bitcoin is no longer simply an investment asset, but a link in the underground wars between nations.