BitRiver founder detained in $7.9M fraud case

A Moscow court has moved BitRiver founder Igor Runets from house arrest to pretrial detention as investigators examine an alleged fraud involving nearly ₽1 billion.

The Zamoskvoretsky District Court approved the change on July 22 and ordered Runets to remain in custody for two months. The new charge became public on July 29 through reports based on court records and sources familiar with the investigation.

Runets faces an accusation under Part 4 of Article 159 of Russia’s Criminal Code, which covers fraud on an especially large scale. The charge remains an allegation, and no court has found him guilty.

Why the BitRiver founder was moved into custody

According to Pravo.ru, investigators allege that Fox Group, a company controlled by Runets, signed an equipment-supply contract with Infrastructure of Siberia in 2023. Infrastructure of Siberia is part of the En+ group.

The contract reportedly covered more than $8 million of cryptocurrency-mining machines. Investigators say the buyer transferred more than $7.9 million as an advance and expected delivery within 32 days. However, prosecutors allege that the equipment was not delivered and the payment was not returned.

Forbes Russia, citing RBC and case materials, identified the machines as Antminer S19k Pro units. The report said the buyer sent a formal demand for delivery or repayment before cancelling the agreement.

Investigators claim Runets “did not intend to fulfil the contract” and used the money at his discretion. That account reflects the prosecution’s position and has not been proven at trial.

The En+ dispute began as a commercial case

The dispute developed from an earlier commercial relationship between BitRiver and En+. In November 2020, the companies announced the creation of Bit+, a joint venture intended to operate cryptocurrency-mining facilities using hydropower in Russia’s Irkutsk region.

At the time, an official En+ company release described BitRiver as the operator of Russia’s largest data centre offering colocation services for Bitcoin miners. En+ was responsible for supplying electricity, while BitRiver managed mining operations.

However, the relationship later led to several civil claims. In April 2025, the Arbitration Court of the Irkutsk Region reportedly ordered Fox Group to pay Infrastructure of Siberia ₽954.4 million over the disputed advance payment.

Earlier reporting on the En+ claims said the court also restricted access to some funds and equipment during the dispute.

Runets disputed the claimant’s account in May 2025. He said the equipment “was delivered” and stated that Fox Group intended to appeal the judgment. His claim directly conflicts with the current investigative allegation that the machines never arrived.

BitRiver was already facing bankruptcy pressure

The criminal investigation comes as BitRiver and related companies face financial and insolvency proceedings.

Notably, BitRiver faced bankruptcy proceedings over unpaid debts after creditors brought claims linked to equipment, electricity and>What happens next in the BitRiver fraud case

Runets is expected to remain in pretrial detention for two months unless an appeal changes the court’s order. Investigators may use that period to examine company records, equipment documentation, bank transfers and testimony from people connected to Fox Group and En+.

A Moscow court also froze Runets’s ownership interests in Fox Group and several BitRiver-related entities in June, according to Forbes. The restrictions may remain in place while investigators examine whether company assets relate to the alleged offence.

BitRiver remains a privately held company, and it has no verified publicly traded token linked to its operations. Therefore, no direct crypto-market reaction can be reliably attributed to Runets’s detention.

The company also remains subject to U.S. sanctions. The U.S. Treasury Department sanctioned BitRiver AG and ten Russian subsidiaries in April 2022. Treasury said cryptocurrency-mining companies could help Russia monetise its energy resources.

In related coverage, BitRiver previously claimed Russia could overtake the U.S. in Bitcoin mining. That forecast was a company claim and has not been confirmed by independent mining data.