TLDR
- Igor Runets was moved from house arrest to pretrial detention on July 29.
- Prosecutors allege the BitRiver founder caused about $12.5M in damages to En+.
- The case centers on prepaid crypto mining equipment that investigators say was not delivered.
- Runets faces large-scale fraud charges under Article 159 of Russia’s Criminal Code.
- BitRiver parent Fox Group entered bankruptcy monitoring over about $9.2M in debt.
BitRiver founder Igor Runets has been moved from house arrest to pretrial detention as Russian investigators pursue a large-scale fraud case tied to an undelivered crypto mining equipment deal.
Moscow Court Tightens Detention Measures
The Zamoskvoretsky District Court of Moscow approved the transfer of Runets to a pretrial detention facility on July 29. The ruling means the founder of Russia’s largest crypto mining company must remain in custody for at least two months while the investigation continues.
Runets had previously been under house arrest as authorities reviewed claims linked to a mining equipment supply contract. Prosecutors are pursuing charges under Part 4 of Article 159 of the Russian Criminal Code, which covers large-scale fraud allegedly committed by an organized group.
Investigators claim the case caused close to 1 billion rubles, or about $12.5 million, in damages to En+, a Russian energy and metals group. The case centers on an equipment contract between a company controlled by Runets and a subsidiary of En+.
Authorities allege the company received full advance payment for crypto mining equipment but failed to deliver the machines. Investigators also claim the funds were not returned after the contract was left unfulfilled.
En+ Equipment Deal Drives Fraud Case
Law enforcement officials requested stricter custody measures because of the size of the alleged damages. They also cited concerns that Runets could influence witnesses if he remained outside detention.
The court accepted the request and moved him into custody as investigators continue collecting evidence. Further progress in the case is expected to depend on equipment examinations and witness testimony from En+ representatives.
Representatives for BitRiver and Runets’s legal team had not issued a public response to the court ruling at the time of reporting. The absence of a public response leaves the company’s position unclear as the case moves forward.
The latest detention order follows earlier legal trouble for Runets in 2026. Authorities arrested him in February on suspicion of concealing assets meant to cover tax debts.
BitRiver’s parent company, Fox Group, has also faced financial pressure. A Russian court placed the company under bankruptcy monitoring in January over an unresolved debt of about $9.2 million.
That debt was also linked to an unfulfilled equipment supply contract involving an En+ subsidiary. The overlapping disputes have placed BitRiver’s corporate structure, supply contracts, and finances under closer legal review.
Russia Increases Pressure on Crypto and Tech Figures
BitRiver has been one of Russia’s most prominent crypto mining companies, supported by access to large-scale energy infrastructure. The case arrives as Russian authorities continue tightening oversight across crypto, technology, and online platforms.
Russia has also charged Telegram founder Pavel Durov with aiding terrorism and placed him on an international wanted list. The Federal Security Service accused Telegram of failing to remove channels, chats, and bots allegedly used by Ukrainian intelligence.
Durov rejected Moscow’s actions and described them as a “sad spectacle of a state afraid of its own people.” Telegram also dismissed the move through its social media response.
Russian authorities have also restricted parts of Telegram’s service as they push users toward state-backed domestic platforms. Those moves have raised further attention around Moscow’s approach to foreign technology services and digital communication tools.
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