BitRiver Founder Igor Runets Moved to Pretrial Detention in $7.9M Fraud Case

A Moscow court has transferred BitRiver founder Igor Runets from house arrest to pretrial detention as investigators examine an alleged fraud involving nearly ₽1 billion (approximately $7.9 million).

The Zamoskvoretsky District Court approved the change on July 22, 2026, ordering Runets to remain in custody for two months. The charge became public on July 29 through reports based on court records and sources familiar with the investigation.

Runets faces accusations under Part 4 of Article 159 of Russia's Criminal Code, which covers fraud on an especially large scale and carries a maximum penalty of up to ten years' imprisonment. The charge remains an allegation, and no court has found him guilty. The case marks an escalation from the civil arbitration proceedings already underway between the same parties to a criminal prosecution, significantly raising the legal stakes for Runets.

Founder of Russia's Largest Crypto Miner Held Over Alleged 1 Billion-Ruble Fraud — A Moscow court has moved BitRiver founder Igor Runets from house arrest to pretrial detention for two months over alleged large-scale fraud involving nearly RUB 1 billion. Investigators allege that… pic.twitter.com/3h1x4rXTmc
— Wu Blockchain (@WuBlockchain) July 30, 2026

Circumstances Behind the Detention

According to Pravo.ru, investigators allege that Fox Group, a company controlled by Runets, signed an equipment-supply contract with Infrastructure of Siberia — a subsidiary of the En+ group — in 2023. The contract reportedly covered more than $8 million worth of cryptocurrency-mining machines.

Investigators say the buyer transferred more than $7.9 million as an advance payment and expected delivery within 32 days. Prosecutors allege that the equipment was never delivered and the payment was not returned.

Forbes Russia, citing RBC and case materials, identified the machines as Antminer S19k Pro units, Bitmain-manufactured devices widely used in industrial-scale Bitcoin mining. The report stated that 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 funds at his discretion. This account reflects the prosecution's position and has not been proven at trial.

Origins of the En+ Dispute

The dispute stems from an earlier commercial relationship between BitRiver and En+. In November 2020, the two companies announced the creation of Bit+, a joint venture designed to operate cryptocurrency-mining facilities powered by hydropower in Russia's Irkutsk region. En+ Group, the aluminum and energy conglomerate founded by Oleg Deripaska, controls extensive hydroelectric assets in Siberia that have long attracted cryptocurrency miners seeking low-cost electricity.

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 partnership later gave rise to several civil claims. In April 2025, the Arbitration Court of the Irkutsk Region ordered Fox Group to pay Infrastructure of Siberia ₽954.4 million over the disputed advance payment. Earlier reporting indicated that the court also restricted access to certain funds and equipment during the proceedings.

Runets disputed the claimant's account in May 2025, asserting that the equipment "was delivered" and stating that Fox Group intended to appeal the judgment. His claim directly conflicts with the current investigative allegation that the machines never arrived.

Bankruptcy Pressure on BitRiver

The criminal investigation unfolds as BitRiver and related entities face financial and insolvency proceedings. BitRiver has faced bankruptcy proceedings over unpaid debts after creditors brought claims linked to equipment, electricity, and other obligations.

What Comes Next

Runets is expected to remain in pretrial detention for two months unless an appeal modifies the court's order. Investigators may use this period to examine company records, equipment documentation, bank transfers, and testimony from individuals 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 2026, according to Forbes. Those restrictions may remain in place while investigators assess whether company assets relate to the alleged offence.

BitRiver remains a privately held company with no verified publicly traded token linked to its operations. No direct crypto-market reaction can be reliably attributed to Runets's detention.

U.S. Sanctions and Prior Claims

The company also remains subject to U.S. sanctions. The U.S. Treasury Department sanctioned BitRiver AG and ten Russian subsidiaries in April 2022, stating that cryptocurrency-mining companies could help Russia monetise its energy resources. The sanctions targeted a sector that had grown significantly after China's 2021 crackdown on cryptocurrency mining drove operators to relocate to jurisdictions including Russia, Kazakhstan, and North America.

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