The fraud case is layered on top of an earlier tax investigation. Runets was initially detained in late January 2026 on suspicion of concealing assets to avoid tax payments under Article 199.2 of the Russian Criminal Code. That charge alone carries a potential prison sentence of up to three years. The new fraud charge, however, could lead to a sentence of up to 10 years if Runets is convicted.
BitRiver's financial position was already under strain before the latest detention. The company's parent entity, Fox Group of Companies LLC, entered bankruptcy monitoring around January 27, 2026, just days before Runets' first arrest. Fox Group reportedly carries roughly $9.2 million in debt, linked to the same equipment delivery disputes now at the center of the fraud case. The company filed for bankruptcy after determining it lacked sufficient funds or assets to repay what it owes.
Founded in 2017, BitRiver grew into a major global crypto mining infrastructure operator. The company runs 15 data centers across Russia with a combined capacity of 533 MW and more than 175,000 servers. It has ranked first among Russian mining companies by revenue. The detention of its founder and the parent company's bankruptcy proceedings now threaten the firm's survival and could trigger a change in ownership.