BitRiver Founder Detained Over Alleged ₽1 Billion Mining Contract Scam

BitRiver founder Igor Runets has been moved from house arrest to pretrial detention in Moscow, accused of nearly ₽1 billion ($7.9 million) fraud related to a prepaid mining equipment contract with Infrastructure of Siberia.

The dispute began as a commercial case between BitRiver and En+, which had announced a joint venture, Bit+, to operate cryptocurrency-mining facilities using hydropower in Russia's Irkutsk region.

Investigators claim that Runets' company, Fox Group, signed the equipment-supply contract with Infrastructure of Siberia in 2023 for over $8 million worth of Antminer S19k Pro units, but did not deliver the machines and failed to return the payment.

The En+ dispute has been ongoing since November 2020, with BitRiver facing bankruptcy proceedings due to unpaid debts and creditors' claims linked to equipment, electricity, and data-centre services.