Russian Court Sends BitRiver Founder Igor Runets From House Arrest to Pre-Trial Detention

TL;DR

• Russian authorities transferred BitRiver founder Igor Runets from house arrest to pre-trial detention for at least two months while a fraud investigation continues in Moscow.
• Investigators allege an unfulfilled $8 million equipment contract caused more than 1 billion rubles, about $12.5 million, in damages to an En+ subsidiary.
• Runets also faces tax-evasion charges, while BitRiver’s controlling shareholder is in insolvency proceedings after regional mining restrictions disrupted parts of its operations.

A Moscow court has transferred BitRiver founder Igor Runets from house arrest to pre-trial detention as investigators pursue allegations of large-scale fraud tied to a crypto mining equipment contract. The Zamoskvoretsky District Court approved the stricter preventive measure on Wednesday, requiring him to remain in custody for at least two months while the inquiry continues. The case has moved from financial distress into a more severe phase of personal legal exposure amid a widening crisis. Runets faces accusations under Russia’s criminal code involving fraud on an especially large scale allegedly committed by an organized group.

Equipment dispute deepens BitRiver’s legal and financial strain

The investigation centers on an equipment supply agreement connected to Infrastructure of Siberia, a subsidiary of industrial conglomerate En+. Authorities allege that a contract worth about $8 million was not fulfilled, causing damages exceeding 1 billion rubles, or approximately $12.5 million. Prosecutors are treating the failed delivery as alleged criminal conduct rather than a conventional commercial dispute with significant legal consequences. The distinction is consequential because the eventual case may depend on equipment examinations, contract records and witness testimony from En+, leaving the factual boundary between nonperformance and fraud to investigators and the court.

Runets had already been placed under house arrest earlier this year after being charged with three counts of tax evasion. At the same time, BitRiver’s controlling shareholder, Group of Companies Fox, entered insolvency proceedings following unresolved obligations linked to another equipment supply arrangement. The founder’s detention arrives amid mounting pressure across both his personal affairs and BitRiver’s corporate structure for employees and creditors. What once appeared to be an expansive mining operation is now confronting overlapping tax, fraud and bankruptcy-related challenges, each capable of complicating the company’s access to financing, counterparties and operational stability.

BitRiver was founded in 2017 and grew into Russia’s largest crypto mining company, eventually operating 15 data centers with more than 175,000 servers. Its position weakened after a six-year mining ban across 10 Russian regions forced the closure of several facilities and intensified financial strain. The legal case now threatens a business already destabilized by regulatory restrictions and insolvency proceedings across the sector. Runets has not been convicted, and the allegations remain subject to investigation, but moving him into pre-trial detention signals that authorities view the matter seriously while evidence and testimony are still being assembled.