BitRiver Founder Detained: Fraud Allegations Escalate Amid Bankruptcy and Sanctions

Woofun AI reports that the detention of Alexey Runets marks a critical escalation for BitRiver, transforming a commercial collapse into a criminal investigation involving Fox Group, Infrastructure of Siberia, and En+.

The core of the conflict lies in a prepaid equipment deal where Infrastructure of Siberia, a subsidiary of energy and metals group En+, claims Fox Group failed to deliver mining hardware. After terminating the agreement, the En+ affiliate demanded the return of its advance along with penalties, setting the stage for a protracted legal battle over the missing assets.

An arbitration court ruled in April 2025 that Fox Group must pay 954.4 million rubles to cover the advance and delay penalties. Runets disputed this outcome, telling Kommersant that the equipment had been supplied and announcing that Fox Group would appeal, creating conflicting narratives regarding the delivery status.

Prior to this month, Runets was already under legal restriction; on January 31, the Zamoskvoretsky District Court placed him under house arrest for two months. This measure was imposed by Moscow courts over allegations that he concealed money or property from tax collection, a separate issue from the current fraud charges.

The fraud case is legally distinct from tax evasion, requiring proof of deception or abuse of trust in obtaining property. Investigators reportedly sought stricter measures because Runets could influence witnesses at companies he controlled, citing Article 159 which defines fraud through such deceptive practices.

Woofun AI data shows that parallel insolvency proceedings began on January 27 when the Arbitration Court of the Sverdlovsk Region opened observation proceedings against Fox Group. This entity controls 98% of BitRiver’s management company, and Infrastructure of Siberia filed for its bankruptcy after a creditor claim exceeding 700 million rubles went unenforced due to insufficient Fox Group property.

Legal distinctions remain sharp between bankruptcy and fraud; while bankruptcy assesses ability to pay, fraud under Part 4 of Article 159 covers offences by an organised group on an especially large scale. Such charges carry up to 10 years imprisonment alongside fines and liberty restrictions, yet investigators have not published details on specific deceptive acts or victim entities.

BitRiver’s operational significance is underscored by its role as one of Russia’s largest operators of industrial Bitcoin mining data centres. Runets was central to relationships with power suppliers, equipment vendors, customers, and regional authorities, so removing him creates a governance crisis while creditors circle.

External pressures intensified when the U.S. Treasury sanctioned Bitriver AG and 10 Russia-based subsidiaries in April 2022, cutting off international access. Domestically, regulatory oversight tightened as more than 5,500 crypto miners entered the official registry, forcing large operators to disclose revenue, power consumption, and corporate structure.

The documented record covers an equipment dispute, a judgment approaching 1 billion rubles, and insolvency against BitRiver’s controlling shareholder. Until a formal statement from an acting executive or new court orders emerge, the case remains ambiguous, sitting between business failure and criminal fraud.