Igor Runets, founder of BitRiver, has been transferred from house arrest to pretrial detention following accusations of large-scale fraud involving nearly 1 billion rubles. A Moscow court ordered his detention for two months as investigators dig into claims that prepaid cryptocurrency mining machines were never delivered despite a substantial advance payment.
The case centers on a 2023 contract signed by Fox Group, controlled by Runets, with Infrastructure of Siberia, part of the En+ group. According to investigators, Fox Group paid over $7.9 million upfront for Antminer S19k Pro mining equipment, expecting delivery within a month. Prosecutors allege the machines never arrived and the funds were not refunded. Runets faces charges under Russia’s Criminal Code for fraud on an especially large scale, though he has not been found guilty and the accusations remain unproven in court.
Background of the Dispute
This conflict stems from a commercial relationship between BitRiver and En+, with the parent company now facing bankruptcy processes linked directly to this disputed contract. Before the cancellation, the buyer formally demanded either delivery or repayment, claims Forbes Russia based on RBC reports and case documentation. Officials say Runets allegedly had no intent to fulfill the contract, instead using the money at his discretion.
This development comes amid growing turbulence in Russia's crypto mining sector, reflecting broader challenges companies face in fulfilling large-scale equipment deals. The case highlights the risks embedded in prepaid contracts for mining infrastructure.
This material is for informational purposes and does not constitute financial advice.
