- Moscow court jails Bitmama seven years for $23 million scam.
- Fedyakina moved stolen funds to UAE wallets and never invested in promised crypto.
- She tricked investors with fake gold, oil, and mineral promises.
A Moscow court has sentenced Valeria Fedyakina, known as “Bitmama,” to seven years in prison. She posed as a cryptocurrency expert and promised big returns to investors. Instead, she operated the huge pyramid of scams. She managed to steal 23M of Bitcoin within two months.
Fedyakina Moved Investor Funds to UAE Wallets, Skipped Investments
According to The Telegraph report, Fedyakina offered to turn the money of clients into crypto in Dubai. She said this would help to prevent the Russian sanctions. To tell the investors that she was able to transfer currency to overseas locations without having to go through banks. Her claims were believed by many people because there has been a tightening of rules in banking ever since the course of Western sanctions.
https://x.com/Telegraph/status/1938361675133915252
However, she failed to stick to her word. She had transferred the funds to her crypto wallets in the United Arab Emirates instead. Prosecutors established that she never had the intention of investing the money. She just took the money and got away.
Fedyakina nicknamed herself Bitmama and even referred to herself as Bitmama Finance. She attended to her clients in the hotels in Moscow and made them feel safe. She guaranteed oil, gold and mineral profits. These were false claims.
One witness testified that people were giving millions a day. Initially, daily collections were between 2 million to 3 million dollars. After a short period, the daily amounts increased up to 15 million dollars. A great number of investors believed in her and wanted to become rich in a short period.
The case was considered in the Presnensky District Court, whose verdict was rendered on June 24. Prosecutors requested a sentence of ten years in prison which is the maximum term of serving time in Russia due to a fraud-based crime. But the court decided of seven years.
Moreover, the court instructed Fedyakina to compensate the stolen cash. Victims are praying they would get back part of their lost savings. The scam wiped out a lot of save money of many victims.
Russian Authorities Pledge Crackdown to Stop More Crypto Scams
This example shows the dangers of putting money in dangerous crypto schemes. Along with the popularity of crypto, scams and frauds have become more frequent. The case of Bitmama serves as an alert to investors to be watchful.
Russia has seen a rise in crypto crime. Sanctions and banking limits push people to find new ways to move money. This is a situation that scammers take advantage of like Fedyakina. They advertise that you will easily make profits and comes in to give you losses.
She was referred by many as a crypto expert. As a matter of fact, she knew how to earn the trust of people and steal their money. She employed the use of fancy, incredulous words and bogus investment transactions to entrap her victims.
The message that is conveyed by the court is rather clear. It will bring crypto criminals to justice. They are not able to conceal themselves through new technology. Regulators need to stay ahead of crypto crime and defend the investors.
Eventually, the life of Fedyakina demonstrates that the offer to make investments must be verified twice. Rapid promises of riches happen to be too good. Investors have to investigate and inquire.
The authorities in Russia state that they are going to keep suppressing crypto fraud. They are hoping this case will prevent others who would attempt the same tricks. At present, Fedyakina is incarcerated for seven years. She is obliged to pay back each stolen ruble. Her victims are hoping that they will be refunded soon. This is the lesson that the crypto world should take and develop secure systems to all.
The post Moscow Court Jails Bitmama for $23 Million Bitcoin Scam appeared first on Live Bitcoin News.