BitRiver founder detained in $12M fraud, faces bankruptcy

BitRiver founder Igor Runets is in pre-trial detention over alleged $12M fraud involving En+ Group. BitRiver and parent Fox Group face bankruptcy and legal risks.

Igor Runets, founder of BitRiver—Russia’s largest cryptocurrency mining company—has been transferred from house arrest to pre-trial detention by a Moscow court. He faces charges of large-scale fraud related to an alleged failure to deliver mining equipment to an En+ Group affiliate, resulting in losses of nearly 1 billion rubles (about $12 million). Previously, arbitration courts ordered damages to be paid to the En+ affiliate, but the dispute has now escalated into a criminal case. Runets was already under house arrest for a separate tax evasion investigation. Meanwhile, BitRiver’s parent company, Fox Group, is undergoing bankruptcy proceedings with debts totaling approximately $9.2 million. The court cited concerns that Runets could influence witnesses as the reason for his detention. The outcome of the case will depend on equipment appraisals and testimony from En+. BitRiver now faces significant financial and legal risks, including potential bankruptcy and changes in ownership.