BitRiver founder charged in Russia with $12.5 million fraud

PolicyBitRiver founder charged in Russia with $12.5 million fraudIgor Runets has been transferred to a pre-trial detention facility from house arrest as he faces accusations of failing to deliver on a contract.By Olivier Acuna|Edited by Sheldon Reback Jul 30, 2026, 10:02 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowA Russian court transferred BitRiver founder Igor Runets from house arrest to a pretrial detention facility to face charges of large-scale fraud tied to an alleged failure to deliver crypto mining equipment.Investigators say Runets caused more than 1 billion rubles (about $12.5 million) in damages by not fulfilling an $8 million equipment contract with Infrastructure of Siberia, a subsidiary of the En+ industrial conglomerate.Runets, previously charged with tax evasion, and his company BitRiver have come under mounting pressure as a six-year regional ban on crypto mining and related insolvency proceedings destabilize the firm’s once-expansive Siberian data center operations.A Russian court transferred Igor Runets, the founder of the country’s largest crypto mining company BitRiver, to a pretrial detention facility to face trial for fraud, Pravo.ru reported on Thursday.Runets is charged with “large-scale” fraud, according to the news service. Investigators allege he caused damages exceeding 1 billion rubles ($12.5 million) by failing to deliver equipment to Infrastructure of Siberia, a subsidiary of En+, a multibillion-dollar corporation that produces 5% of the world's aluminum and also manages digital, technology and crypto mining infrastructure projects.Russian law enforcement officials say that in 2023, Runets entered into an equipment supply contract worth $8 million that it never fulfilled, according to Pravo.ru.Runets, a crypto mining pioneer in Russia, was reportedly detained and placed on house arrest in February on three charges of tax evasion. The Stanford U…

BitRiver founder charged in Russia with $12.5 million fraud

Coins in this story

Related stories

Crypto exchange Luno cuts 20% of staff amid automation push and retail trading slumps

Crypto's resilience tested as oil rises after Iran strikes, Fed signals rates could still rise

Bitcoin, ether whipsaw wipes out $286 million in leveraged bets