Russia's Biggest Crypto Miner Linked To Alleged 1B Ruble Fraud

Court Escalates Detention as Fraud Charges Mount

A Moscow court has moved BitRiver founder Igor Runets from house arrest to pretrial detention for two months, marking a significant escalation in the legal troubles surrounding Russia's largest crypto mining operator. Runets now faces charges of large-scale fraud related to the supply of cryptocurrency mining equipment to En+ structures, with alleged damages estimated at nearly 1 billion rubles, or approximately $13 million.

In 2023, the Fox group of companies, controlled by Runets, was contracted to transfer a batch of Antminers to OOO "Infrastruktura Sibiri," an En+ subsidiary, with the customer prepaying around $7.9 million under a 32-day delivery window. The miners did not arrive within the stipulated time, and according to investigators, the equipment was never handed over and the prepayment was not returned.

On July 22, the Zamoskvoretsky District Court in Moscow changed Runets' pretrial measure from house arrest to detention for two months. His earlier house arrest had stemmed from a separate matter: Runets had been under house arrest since January 2026 in a case concerning the concealment of funds that were supposed to be used to pay taxes. The investigation was later expanded to include claims related to the failed delivery.

A High-Profile Fall for Russia's Mining Giant

BitRiver reportedly brought in roughly $129 million in revenue in 2024, operating about 175,000 mining rigs across 15 data centers and consuming more than 500 megawatts of power. That scale made it the dominant force in Russia's industrial mining market, but also drew sustained scrutiny from regulators and former business partners alike.

BitRiver was already sanctioned by the United States in 2022 over Russia's invasion of Ukraine, and has been confronting a potential bankruptcy after an En+ Group subsidiary filed a $9.2 million insolvency claim tied to the allegedly undelivered mining equipment. En+ and its subsidiary Infrastruktura Sibiri filed and won several lawsuits against BitRiver and its subsidiaries for breach of contract and unpaid electricity bills.

Runets has disputed the fraud allegations. He has asserted that the equipment was delivered, and his company GC Fox is appealing the court's decision. The legal fight, however, has broadened well beyond any single contract dispute. Runets' detention underscores a broader shift in how Russian authorities are approaching the crypto sector, with enforcement actions becoming more visible, particularly where large sums, tax compliance, and energy use intersect.

Sources:
ForkLog: BitRiver Founder Charged with $13 Million Fraud
CoinDesk: Russia Crypto Mining Pioneer Igor Runets Put Under House Arrest on Tax Charges
Decrypt: Russia's Largest Crypto Miner BitRiver Faces Bankruptcy as CEO Under House Arrest