Russian authorities suspect that a prominent figure in the crypto world, known as Bitmama or the “Queen of Crypto,” may have provided digital assets to support Ukraine’s military efforts.

Valeria Fedyakina, who goes by the alias Bitmama, was taken into custody by the police in September following allegations of fraud made by an acquaintance.

She currently remains in custody, and a news channel recently shared an image purportedly showing her in a pre-trial detention center. Despite being seven months pregnant, Fedyakina requested house arrest, but her plea was rejected by the court, which deemed her a potential flight risk due to her UAE residency status.

A branch of the Moscow City Court has ruled that she will remain in custody until November 15.

The anonymous acquaintance claimed that Fedyakina had deceived him into transferring around $70 million. However, investigators believe that Fedyakina, a 28-year-old originally from Ukraine, embezzled these funds.

They also suspect that she may have transferred a portion of these embezzled funds to the Armed Forces of Ukraine. Additionally, it is alleged that she received approximately $7.7 million from two other individuals before disappearing from their radar.

All three individuals intended to invest the money in UAE real estate.

Bitmama had presented herself as a crypto expert adept at evading sanctions and facilitating the cross-border transfer of funds using cryptocurrencies. Media articles often referred to her as the “queen of crypto” and the “queen of crypto exchange.” She reportedly promised investors that she would return their investments along with a 1% profit if they entrusted her with their funds.

Bitmama’s legal team, as cited in the media, contends that she actually “supports” Russia’s “Special Military Operation” in Ukraine and is willing to donate funds to the Russian military.

They have raised concerns about the potential separation of Fedyakina from her child after giving birth if she remains in custody.

Furthermore, her legal team asserts that their client is being framed and that she had merely withdrawn money on behalf of her clients, who subsequently failed to reimburse her.

Russian law enforcement has been vigilant in monitoring individuals suspected of contributing cryptocurrencies to support Ukraine, and such individuals have faced severe legal consequences. In a notable case, a resident of Khabarovsk Krai was detained by the FSB, Russia’s intelligence service, and charged with treason in June for allegedly sending cryptocurrencies to the Ukrainian military.