BitRiver Founder Igor Runets Faces Pre-Trial Detention As Russia Probes 1 Billion Ruble Crypto Mining Equipment Fraud

BitRiver Founder Detained As Russia Expands $12.5 Million Crypto Mining Fraud Investigation

Russia's largest cryptocurrency mining company is facing deeper legal trouble after its founder, Igor Runets, was moved from house arrest to a pre-trial detention centre as investigators pursue a large-scale fraud case linked to an undelivered crypto mining equipment deal.

A Moscow court approved the tougher measure after prosecutors accused Runets of taking advance payments worth nearly 1 billion rubles (around US$12.5 million) for mining equipment that investigators say was never delivered or refunded.

The allegations remain unproven, and no court has found him guilty.

Court Orders Stricter Custody For BitRiver Founder

The Zamoskvoretsky District Court in Moscow approved Runets' transfer to pre-trial detention on 22 July 2026, ordering him to remain in custody for at least two months while the investigation continues.

The development became public on 29 July through court records and local media reports.

Runets is accused under Part 4 of Article 159 of Russia's Criminal Code, which covers fraud on an especially large scale committed by an organised group.

Authorities are continuing to examine financial records, company documents, equipment details and witness testimony before deciding on the next stage of the case.

Why Investigators Say The Equipment Deal Failed

According to investigators, Fox Group, a company controlled by Runets, signed a contract in 2023 with Infrastructure of Siberia, a subsidiary of Russian energy company En+, to supply cryptocurrency mining equipment.

The agreement reportedly covered more than US$8 million worth of mining machines, including Antminer S19k Pro units.

Prosecutors allege that the buyer transferred more than US$7.9 million in advance, expecting delivery within 32 days.

Investigators claim the equipment was never delivered and the payment was not returned.

They further allege that Runets "did not intend to fulfil the contract" and used the money at his own discretion.

That statement represents the prosecution's position and has not been proven in court.

Business Partnership Turned Into A Court Battle

The dispute grew out of an earlier business partnership between BitRiver and En+.

In 2020, the companies formed a joint venture known as Bit+ to develop cryptocurrency mining facilities powered by hydropower in Russia's Irkutsk region.

Their commercial relationship later deteriorated into legal action.

In April 2025, the Arbitration Court of the Irkutsk Region ordered Fox Group to repay 954.4 million rubles (around US$11.9 million) to Infrastructure of Siberia over the disputed advance payment.

Runets rejected the claims in May 2025, saying the equipment "was delivered" and that Fox Group intended to appeal the ruling.

His statement directly conflicts with investigators' allegation that the machines never arrived.

Legal And Financial Pressure Continues To Grow

The fraud investigation follows earlier legal problems involving BitRiver and related companies.

Fox Group entered bankruptcy monitoring in early 2026 over unresolved debts connected to the same equipment supply dispute.

Runets was also placed under house arrest in January 2026 over separate tax evasion allegations, with investigators later combining multiple tax-related cases into a broader investigation.

In June, a Moscow court also froze Runets's ownership interests in Fox Group and several BitRiver-related companies while authorities examine whether those assets are connected to the alleged offence.

BitRiver also remains under U.S. sanctions after the U.S. Treasury designated the company and several subsidiaries in April 2022, saying cryptocurrency mining businesses could help Russia monetise its energy resources.