Glamorous Russian crypto queen Bitmama stole £17m in two months to fund Ukrainian army

The total was revealed as police completed their investigation into Valeria Fedyakina, 24, known as 'Queen of Crypto', who was arrested on September 15, last year on suspicion of running an alleged pyramid scam.

Although victims claimed to have lost vast sums, including one who claimed he was stung for $70m (£57m), investigators have now finished their work and confirm only losses of RUB 2.2 billion (£17m) from four victims in two months in 2023.

Fedyakina, who called herself 'Bitmama' on social media, portrayed herself as a cryptocurrency expert with offices in Moscow City, Dubai, Monaco, Serbia, and Turkey. This allowed her to gain the trust of four confirmed victims.

She had, say police, told investors she would transfer their money to Dubai crypto to avoid banking restrictions. Clients claimed she promised them a one per cent bonus on the cash they sent her once it had been changed into crypto.

But prosecutors say the cash disappeared and believe Fedyakina funnelled it to Ukraine's armed forces to help their fight against Russia's invasion. Fedyakina was arrested as she tried to leave Russia aboard a flight to the UAE.

She was placed in pre-trial detention in September of last year. At the time, she was six months pregnant, but the court refused to soften her detention with house arrest.

She eventually gave birth to a daughter in a special maternity hospital and then returned to detention.

Her defence denied the claims of fraud and told local media she supports the Russian invasion and is ready to donate funds to help the Moscow military. They claimed she was a victim of a conspiracy and had used her own money to pay the clients who, she claimed, never paid her back.

Prosecutors will file formal charges against her at the start of next month (November), when all the documents from the police investigation will be submitted. Fedyakina faces up to 10 years in prison if convicted under the charges.

Story: NewsX