Russian authorities detained BitRiver founder Igor Runets on expanded fraud charges. Prosecutors allege the case involves nearly RUB 1 billion in mining equipment fraud. The investigation coi
Russia’s cryptocurrency mining sector faces increased scrutiny after authorities expanded the legal case against BitRiver founder Igor Runets. A Moscow court ordered Runets into formal detention on July 22 after prosecutors added fraud charges to an ongoing tax investigation. Prosecutors allege he orchestrated fraudulent mining equipment transactions involving entities linked to En+ Group, causing nearly RUB 1 billion in damages.
According to local media, authorities placed Runets under house arrest on January 30 over alleged tax evasion involving concealed assets. The Moscow Zamoskvoretsky District Court approved two months of detention while investigators continue examining the expanded allegations and related financial transactions.
BitRiver’s legal challenges have unfolded alongside growing financial pressure on its parent company, Fox Group of Companies. The company entered bankruptcy monitoring during late January, just days before authorities first detained founder Igor Runets. Court records reportedly linked debts exceeding the RUB equivalent of more than USD 9 million to disputed mining equipment transactions, which now form part of the broader fraud investigation.
Despite these developments, BitRiver remains one of the world’s largest cryptocurrency mining infrastructure providers. Since launching in 2017, the company has expanded to operate 15 data centres across Russia with a combined capacity of approximately 533 megawatts. BitRiver also manages more than 175,000 mining servers and reported revenue exceeding RUB 10 billion during 2024, underscoring its significant role within Russia’s cryptocurrency mining industry.
BitRiver faced international challenges before the latest legal developments. The U.S. Treasury sanctioned the company in April 2022, making it the first cryptocurrency mining firm targeted under American sanctions. Those restrictions complicated relationships with global suppliers, partners, and equipment manufacturers.
Russia later introduced legislation in late 2024 to establish a clearer legal framework for cryptocurrency mining. As the country’s largest mining operator, BitRiver became closely linked to those reforms. Runets’ detention has therefore attracted broader attention from the industry. Meanwhile, Fox Group’s bankruptcy proceedings could affect hosted mining clients, while ongoing court decisions may influence BitRiver’s operations, ownership structure, and long-term business stability.
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