Russian Woman Sentenced to 7 Years for $23M Bitcoin Ponzi Scheme as “Bitmama”

Valeria Fedyakina, a Russian national from Simferopol, has been sentenced to seven years in prison by a Moscow court for orchestrating a sophisticated cryptocurrency Ponzi scheme. According to reports from The Daily Telegraph, Fedyakina operated under the alias “Bitmama,” presenting herself as a credible global crypto trader. She assured investors that her platform could facilitate cross-border cryptocurrency transfers to circumvent Western sanctions. Over a span of just 60 days in 2023, she defrauded investors of approximately 23 million US dollars in Bitcoin, equivalent to 22 billion rubles. This case underscores the increasing regulatory scrutiny on fraudulent activities within the digital asset space and highlights the risks associated with unverified crypto investment schemes. Financial authorities continue to emphasize the importance of due diligence and investor vigilance amid the growing complexity of cryptocurrency markets.