Founder of Largest Russian Bitcoin Miner Arrested for Billion-Dollar Fraud

The founder of BitRiver, Russia’s largest crypto mining company, has been placed in pre-trial detention. Igor Runets is suspected of large-scale fraud worth nearly 1 billion rubles. A Moscow court has decided to detain him for two months pending trial.

From house arrest to pre-trial detention

Runets was initially under house arrest, but a Moscow court has ruled that this is no longer sufficient. He will now be held in pre-trial detention for two months. The case revolves around an alleged fraud in which a company under his leadership received full advance payment for mining equipment, but never delivered the machines and also did not refund the money.

The order came from a subsidiary of En+, a Russian energy group. According to the prosecutors, the damages amount to nearly 1 billion rubles. More details about the case can be found at Bits.media.

BitRiver was a leader in the Russian mining sector

BitRiver is considered Russia’s largest crypto mining company and previously ranked first in the country in terms of revenue. The company operates large-scale data centres, mainly in Siberia, where it uses cheap hydropower. The arrest of the founder casts a dark shadow over the company’s future.

The case once again shows how risky the mining sector can be, also from a business perspective. We previously reported on major financial losses in the crypto sector due to hacks, but legal issues surrounding major players also pose a risk to confidence in the industry. For those who want to read more about broader developments in the mining world, our mining news overview provides regular updates.