BitRiver Founder Igor Runets Jailed in $10M Fraud Case

BitRiver founder Igor Runets moved to pre-trial detention in Moscow over a 1 billion ruble fraud case involving undelivered crypto mining hardware.

Investigators allege that a company controlled by Igor Runets received full advance payment for cryptocurrency mining equipment that was never delivered or refunded to the client.

Court Replaces House Arrest with Pre-Trial Detention

The Zamoskvoretsky District Court in Moscow has ordered that Igor Runets be moved from house arrest to a detention facility for a period of at least two months.

This decision followed arguments from the prosecution, who claimed that the severity of the charges and the risk of the accused influencing witnesses necessitated a stricter measure of restraint.

According to reports from local media, Runets is charged under Part 4 of Article 159 of the Russian Criminal Code, which covers large-scale fraud committed by an organized group.

Investigation Centers on Undelivered Equipment

Investigators state the alleged fraud caused damages of approximately 1 billion rubles to En+ Group, one of Russia’s largest industrial and energy holdings.

Prosecution data indicates that an En+ subsidiary transferred a full advance payment to a company controlled by Runets for the delivery of crypto mining hardware. Following the payment, the equipment was never supplied, and the funds were not returned, leading to the initiation of criminal proceedings.

The investigation is ongoing as authorities scrutinize financial flows and contractual agreements between the involved entities.

New Allegations Follow Tax Evasion Case

The current case marks the latest legal hurdle for the BitRiver founder this year.

In February 2026, Runets was detained and placed under house arrest during a separate investigation involving tax evasion and the concealment of assets that prosecutors claim should have been used to settle tax liabilities.

The court’s decision to upgrade his status to pre-trial detention suggests the investigation has entered a new phase, with the businessman now facing parallel legal proceedings.

BitRiver Faces Growing Financial Pressure

The case intensifies the pressure on BitRiver, which has established itself as the largest operator of crypto mining data centers in Russia in recent years.

The company and its parent firm, Fox Group, are already grappling with significant financial difficulties, including accumulated debts estimated at roughly $9.2 million, alongside the risk of restructuring or bankruptcy proceedings.

International sanctions against Russia present a further challenge, restricting local crypto firms’ access to Western hardware, financing, and global partners. Against this backdrop, the criminal proceedings against BitRiver’s founder create fresh uncertainty for one of the dominant players in the Russian mining sector.