A court in Moscow has imposed stricter detention conditions on Igor Runets, the founder of BitRiver, which stands as Russia’s foremost cryptocurrency mining firm. On Wednesday, July 29, the Zamoskvoretsky District Court transitioned Runets from house arrest to a pretrial detention center.
He is required to remain in custody for a minimum of two months while authorities continue their investigation.
Allegations of Fraud
Prosecutors have accused Runets under Part 4 of Article 159 of the Russian Criminal Code, which addresses significant fraud perpetrated by organized groups. Prosecutors claim the case resulted in damages nearing 1 billion rubles for En+, a collective of Russian metallurgical and energy businesses.
As per investigators, a firm under Runets’s control received full upfront payment from a subsidiary of En+ for mining machinery. However, the equipment was never provided, and the payment was not refunded.
The Rationale Behind the Custody Decision
Authorities advocated for Runets’s shift to detention, citing the magnitude of the alleged financial loss and fears that he might influence witnesses involved in the case. The court agreed with the request from investigators and approved the transfer.
Neither representatives from BitRiver nor Runets’s legal team have publicly responded to the ruling. The outcome of the investigation now relies heavily on equipment assessments and testimonies from En+.
Runets’s Previous Legal Issues This Year
This isn’t Runets’s first encounter with legal restrictions in 2026. He was detained in February on allegations of hiding assets intended to address tax obligations, which led to his placement under house arrest due to claims of tax evasion.
BitRiver Faces Growing Financial Struggles
This legal predicament adds to a challenging period for BitRiver, which has held the title of the leading miner in Russia by revenue and is recognized as the country’s largest cryptocurrency miner. The organization is now confronting bankruptcy and a possible shift in ownership.
Fox Group, the parent company of BitRiver, is estimated to have around $9.2 million in outstanding debt. The company filed for bankruptcy, concluding that it does not possess adequate funds or assets to meet its financial obligations.
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