BitRiver founder charged in Russia with $12.5 million fraud
Igor Runets, the founder of crypto mining firm BitRiver, has been charged with $12.5 million in fraud in Russia. The charges stem from an unfulfilled equipment supply contract, adding to his existing legal troubles involving tax evasion and the insolvency of his company.
Why it matters
This case highlights the volatility and legal risks within the Russian crypto mining sector, particularly as it faces increased government scrutiny and regulatory bans.
Runets is charged with “large-scale” fraud, according to the news service. Investigators allege he caused damages exceeding 1 billion rubles ($12.5 million) by failing to deliver equipment to Infrastructure of Siberia, a subsidiary of En+, a multibillion-dollar corporation that produces 5% of the world's aluminum and also manages digital, technology and crypto mining infrastructure projects.
Russian law enforcement officials say that in 2023, Runets entered into an equipment supply contract worth $8 million that it never fulfilled, according to Pravo.ru.
Runets, a crypto mining pioneer in Russia, was reportedly detained and placed on house arrest in February on three charges of tax evasion. The Stanford University MBA graduate began building a crypto mining data center in Siberia in 2017, the same year he founded BitRiver. He later expanded the operation to 15 data centers with more than 175,000 servers.
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