The recent case of the so-called Russian “Crypto Queen,” Valeria Fedyakina, has drawn significant attention due to allegations of a $23 million scam, reportedly involving the diversion of funds to the Ukrainian military. Fedyakina, who used the alias “Bitmama” online, is accused of running a fraudulent investment scheme centered on crypto transactions and money transfers between Russia and Dubai. She primarily used Bitcoin (BTC) for these operations, promoting investment opportunities in industries like oil and gold to lure investors.

Her strategy involved convincing individuals to invest either in fiat or cryptocurrency, with promises of high returns from various business activities. However, authorities allege that she had no intention of fulfilling these promises and instead appropriated the funds for personal use. The allegations have led to multiple charges of large-scale fraud against her, and she remains in pre-trial detention in Russia.

While the specific claim that Fedyakina directed funds to support the Ukrainian army is a new twist in this broader narrative of crypto-related fraud, the core of her operations involved misrepresenting investments and misusing investor funds. This case mirrors other notorious crypto scams, such as the OneCoin scheme led by Ruja Ignatova, although Fedyakina’s alleged activities are more focused on leveraging Bitcoin for cross-border transactions.

Fedyakina’s case is currently in the Russian legal system, with her legal team disputing the charges and seeking her release from custody. Her high-profile social media presence and her promises of quick profits made her a notable figure in the cryptocurrency space, further complicating the ongoing legal proceedings.