Bitcoin: The Largest Russian Miner Wobbles After Its Founder’s Incarceration

The fall accelerates for BitRiver. The Zamoskvoretski District Court in Moscow has transferred Igor Runets, founder of the largest Russian Bitcoin mining operator, from house arrest to a detention center. The entrepreneur must remain incarcerated for at least two months while the investigation into an operation involving mining equipment and the energy group En+ continues. The alleged damage approaches one billion rubles, or about 12.5 million dollars.

Key Points

• The Zamoskvoretski Court in Moscow has placed Igor Runets, founder of BitRiver, in pre-trial detention for two months.
• The charges involve nearly one billion rubles (approximately 13 million dollars) related to mining machines ordered by a subsidiary of En+ that were never delivered.
• Fox Group, the parent company of BitRiver, has been under observation since January for a debt of 9.2 million dollars to the same group.
• Sanctioned by the OFAC in April 2022, BitRiver operated up to fifteen data centers and 533 megawatts, accounting for more than half of Russia's industrial mining.

A Large-Scale Fraud Charge Surrounding Bitcoin Mining

Igor Runets is being prosecuted under the fourth part of Article 159 of the Russian Criminal Code. The procedure targets very large-scale fraud committed by an organized group. Investigators believe that Igor Runets and his company participated in a transaction involving mining machines that allegedly caused nearly one billion rubles in losses to entities linked to En+, a Russian conglomerate specializing in energy and aluminum.

However, the details of the alleged mechanism have not been fully disclosed. Therefore, it should be avoided to present as definitively established that the equipment was never delivered or that Igor Runets personally retained the funds. The entrepreneur had claimed in 2025 that the machines had indeed been supplied, while disputing En+'s claims.

The prosecution has requested the tightening of the preventive measure, citing the risk of witness tampering. The court ultimately followed this request. The investigation must now continue based on expert assessments of the equipment and testimonies collected from the energy conglomerate.

Mr. Runets had been under house arrest since late January in another case. He was then accused of concealing funds or assets that should have been used to pay taxes, contributions, and other tax claims.

BitRiver Already Weakened by Insolvency Proceedings

The legal troubles of the founder add to those of his group. In January, a Russian court placed Fox Group, the parent company of BitRiver, under observation in an insolvency proceeding. The case concerns a debt of approximately 9.2 million dollars arising from a contract for the supply of equipment concluded with a subsidiary of En+.

This observation phase does not yet constitute liquidation. It serves to examine the financial situation, inventory assets, and determine whether the company can be restructured or must be declared bankrupt.

Founded in 2017, BitRiver established itself as the main showcase of Russian industrial Bitcoin mining thanks to hydroelectric power and the cold climate of Siberia. The company claimed to operate up to 15 data centers, over 175,000 machines, and approximately 533 megawatts of capacity. However, these figures come from the group's communications and do not allow for a precise measurement of its current activity.

BitRiver has also been sanctioned by the United States since April 2022. The U.S. Treasury then designated the company and ten of its subsidiaries, the first such measure against a company specializing in cryptocurrency mining.

Runets' detention does not yet condemn BitRiver, but it deprives the group of its leader at a time when its parent company faces its creditors. The outcome will now depend on expert assessments, testimonies from En+, and Fox Group's ability to avoid complete bankruptcy in Putin's Russia, which has increasingly established itself as a major hub for global Bitcoin mining.

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