Bitmama Sentenced to 7 Years in Prison for Defrauding 23 Million USD in BitcoinIntroduction

Valeria Fedyakina, self-proclaimed "Bitmama," was sentenced to 7 years in prison by court #moscow for defrauding 23 million USD in Bitcoin through a pyramid scheme, posing as an investor in Dubai to evade Western sanctions (The Telegraph).

The Bitmama Scam

Valeria Fedyakina, 30, from Simferopol, operated "Bitmama Finance," luring clients to transfer money to Dubai via Bitcoin, promising to evade Western sanctions. In 60 days of 2023, she withdrew 2.2 billion rubles (23 million USD) from clients' wallets, transferring it to the UAE through transactions at luxury hotels in Moscow. Daily transaction amounts reached up to 15 million USD, according to Fedyakina's assistant (Izvestia). She was arrested on 15/09/2023 while attempting to flee to the UAE, and she is being held in Moscow where she gave birth in prison. The court ordered compensation of 23 million USD, although prosecutors sought a maximum sentence of 10 years.

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