'Bitmama' Jailed for $23 Million Bitcoin Scam That Lasted 60 Days

Valeria Fedyakina, who promoted herself as "Bitmama", convinced people she was a trusted crypto dealer who could transfer their money abroad using digital assets.

According to a report by The Telegraph on June 26, her operation generated around $23 million (2.2 billion rubles) in just 60 days.

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Fedyakina told clients she had a way to send funds overseas without using banks, which became harder to access due to Western sanctions. She claimed she would exchange their cash for cryptocurrency and transfer it through Dubai.

However, investigators said she transferred the money to her own crypto wallets based in the United Arab Emirates.

The case was handled by the Presnensky District Court in Moscow, which delivered the verdict on June 24.

Along with her prison sentence, the court ordered Fedyakina to repay the full amount to her victims. The prosecution had originally asked for a ten-year sentence, the maximum allowed under Russia’s fraud laws.

Fedyakina used the names "Bitmama" and "Bitmama Finance" while meeting with clients in hotels across Moscow. Her pitch included promises of investments in oil, minerals, and gold. According to Russian investigators, these claims were only made to gain trust and collect funds.

One witness, her assistant, told authorities that people were handing over between $2 million and $3 million each day when the scheme started. According to a report by Izvestia, the daily total rose to as much as $15 million.

On June 9, four people from Queensland were charged over a $123 million crypto-linked laundering scheme. How did the case unfold? Read the full story.