Igor Runets, the founder of BitRiver, Russia's largest cryptocurrency mining company, is accused of a $12.5 million fraud. Runets, previously under house arrest, has now been transferred to jail for a preliminary hearing. The charges relate to allegations that he failed to deliver cryptocurrency mining equipment to the company "Infrastructure Sibiri," a subsidiary of Runets.
Details of the Charges
Russian investigators claim that in 2023, Runets signed an $8 million contract with "Infrastructure Sibiri" for the supply of equipment but did not fulfill its terms. It is alleged that this resulted in losses of 1 billion rubles (approximately $12.5 million). Runets had previously been charged with tax evasion and was detained on these charges in February.
BitRiver and Economic Troubles
Igor Runets was a pioneer of cryptocurrency mining in Russia, founding BitRiver in 2017. However, Russia's six-year ban on cryptocurrency mining in 10 regions has negatively impacted the operation of BitRiver's data centers in Siberia. These restrictions have led to financial difficulties for the company. In February, bankruptcy proceedings were initiated against the Fox group of companies, the main shareholder of BitRiver.
BitRiver once operated 15 data centers and had over 175,000 servers in Siberia. However, the current legal and economic troubles are making it difficult for the company to continue its operations. The charges against Runets could have serious implications for the company's future.
