Russian social media influencer Valeria Fedyakina, known as the “crypto queen,” is being accused of embezzlement of large amounts of money. The allegations were made after the Russian Investigative Committee conducted a probe into Fedyakina’s activities and accused her of embezzling more than $23 million.
The committee alleges that Fedyakina conducted over-the-counter crypto transactions using various currencies, including Bitcoin, to facilitate international transfers between Moscow and Dubai. These transactions reportedly bypassed traditional banking systems, prompting legal action.
The Russian Investigative Committee's findings suggest that Fedyakina used cryptocurrency to offer currency conversion and international money transfer services without utilising official banking channels. Four individuals have come forward as victims, claiming to have suffered financial losses after using Fedyakina’s services to transfer money between Moscow and Dubai.
Fedyakina allegedly misrepresented her services by promoting a crypto-powered investment scheme, primarily focused on oil and mineral trading. Investigators note that Fedyakina promised high earnings on the invested money and convinced participants to invest in both fiat money and cryptocurrencies. The committee said these actions were part of a conspiracy to dishonestly obtain money from investors through the provision of misleading information about the business ventures.
Fedyakina’s legal team has denied the fraud allegations, emphasising that the charges against her are exaggerated. Her defense has also challenged claims that she poses a flight risk, pointing out that her residence permit in the United Arab Emirates has expired. Currently, Fedyakina remains in a pre-trial detention centre with her newborn daughter, awaiting further legal proceedings.
Her legal advisors claim that those allegations lack facts to support the claims of the prosecution. Fedyakina has no previous criminal record, and according to her legal representatives, she should be released from detention. However, the Moscow City Court has decided that she must stay in custody until the date of an appeal is set.
Among the key witnesses in the case is a former friend of Fedyakina who initially supported her social media promotions. This individual has now turned against her, claiming to have been deceived by Fedyakina’s alleged fraudulent activities. The witness also contributed to the spread of false information about the investment opportunities promoted by Fedyakina.
The investigation continues as authorities build their case against Fedyakina, who was first arrested in September of last year. Despite the mounting evidence, her legal team remains firm in their defense, asserting her innocence.