A Moscow court has tightened detention measures against Igor Runets, founder of BitRiver, Russia’s largest crypto mining company. The Zamoskvoretsky District Court moved Runets from house arrest to a pretrial detention facility on Wednesday, July 29.
Runets must now spend at least two months in detention while investigators continue building their case.
The Fraud Allegations
Prosecutors charged Runets under Part 4 of Article 159 of the Russian Criminal Code, which covers large-scale fraud committed by an organized group. Investigators allege the case caused close to 1 billion rubles in damages to En+, a group of Russian metallurgical and energy companies.
According to investigators, a company controlled by Runets received full advance payment from an En+ subsidiary for mining equipment. The equipment was never delivered, and the funds were never returned.
Why The Court Tightened Custody
Law enforcement officials pushed for Runets’s transfer to detention, citing both the scale of the alleged damages and concerns that he could pressure witnesses in the case. The court sided with investigators and granted the motion.
Representatives for BitRiver and lawyers for Runets have not issued a public response to the ruling. Investigators say the case will now hinge on equipment examinations and witness testimony from En+.
Not Runets’s First Legal Trouble This Year
This is not the first time Runets has faced custody restrictions in 2026. Russian authorities arrested him in February on suspicion of concealing assets meant to cover tax debts, placing him under house arrest over alleged tax evasion.
BitRiver’s Financial Troubles Deepen
The legal case adds to a difficult stretch for BitRiver, which has ranked first among Russian mining companies by revenue and is widely described as the country’s largest crypto miner. The company is now facing bankruptcy and a change in ownership.
Fox Group, BitRiver’s owner, is estimated to carry roughly $9.2 million in debt. The company filed for bankruptcy after determining it lacked sufficient funds or assets to repay what it owes.
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