The blockchain community has been struck by recent news from Russia indicating the arrest of an entrepreneur and crypto influencer answering to the moniker Bitmama, a.k.a the “Queen of Crypto”. Valeria “Bitmama” Fedyakina, as she is known, is no small player in the crypto-scene, with a strong online presence including almost 55,000 followers on Instagram and 7,000 on Twitter.
The arrest on September 15 comes in response to accusations of fraudulent activity by an unnamed individual claiming that Fedyakina duped him out of a sizable $70 million. It is believed that other investors may also have fallen victim to this alleged fraud, with suspicions arising she was running a “financial pyramid”. Upon the accusations surfacing, Fedyakina reportedly attempted to abscond with her investors’ funds, her sudden disappearance only adding fuel to the fire of suspicion.
Fedyakina warranted trust as a prominent figure in the industry, CEO and Founder of a crypto-related firm, Holdinga, promising investors 1% returns on funds deposited with her. Her arrest amidst fraudulent allegations will most likely stir the pot in the cryptocurrency world weighing on investor trust and confidence in the technology.
On the other side of this intrigue is the powerful potential that cryptocurrency has hinted at time and again. Fedyakina, who listed Dubai as her location and held a UAE permit, had previously illuminated crypto’s capability for sanction-evasion, a tempting prospect for many Russians. Operating with a host of wealthy clientele, she hinted at extensive connections with businesses and state-run corporations.
Fedyakina’s unexpected circumstances underscore a deep-seated issue – the polarising nature of the crypto market and the trust-factor that comes inherently with any investment, more so in an intangible, encrypted and decentralized currency, so volatile and unregulated.
Her case seems to tilt the scales towards the skeptic, especially when her blog and social media accounts have been silent, and her company’s website appears to be offline. With reports of her pregnancy during the arrest and a potentially hefty sentence of up to 10 years, the situation creates a ripple in the crypto community.
Crypto enthusiasts will now be left to assess the more intricate layers of caution underlying the crypto gold-rush, highlighting the importance of thorough research and risk-assessment before diving into the potentially rewarding yet equally treacherous waters of cryptocurrency.
Source: Cryptonews
