BitRiver Founder Detained on $12.5M Fraud Amid Tax Evasion and Bankruptcy

Woofun AI reports that Igor Runets, founder of BitRiver, has been placed in pretrial detention following fraud charges linked to an $8 million contract with Infrastructure of Siberia, a subsidiary of En+. This legal escalation compounds existing troubles for the executive, who was already under house arrest for separate tax evasion allegations.

The core of the fraud allegation centers on a 2023 agreement where Runets committed to supplying mining equipment but failed to deliver. Prosecutors assert this supply failure caused losses exceeding 1 billion rubles, equivalent to approximately $12.5 million at current exchange rates. The undelivered assets were intended for Infrastructure of Siberia, creating a significant financial gap for the energy conglomerate’s subsidiary.

Woofun AI data shows that Runets’ legal complications intensified in February when he was placed under house arrest on three counts of tax evasion, though specific details remain undisclosed. Simultaneously, a regional arbitration court initiated bankruptcy proceedings against Fox Group, the entity holding a 98% stake in BitRiver. This corporate insolvency filing introduces substantial financial uncertainty to the operations of one of Russia’s largest cryptocurrency mining data center operators.

En+, which controls roughly 5% of global aluminum output, operates in a sector characterized by regulatory ambiguity and frequent supply chain disruptions. The crypto mining industry in Russia has expanded rapidly despite existing in a legal gray area, making large, unsecured contracts particularly risky. The failure to deliver equipment highlights the vulnerabilities inherent in these complex supply chains.

Runets now confronts a dual legal battle, defending against both the $12.5 million fraud allegations and the ongoing tax evasion charges. With Fox Group’s bankruptcy already underway, the case serves as a cautionary example of the pitfalls facing rapid growth in jurisdictions with evolving regulatory frameworks.