Russian Court Moves BitRiver Founder to Detention Amid Fraud Investigation

A Russian court has ordered the founder of BitRiver, the country’s largest crypto mining company, transferred from house arrest to pre-trial detention as authorities continue investigating fraud allegations tied to his business dealings.

Court Orders Stricter Custody Measures

According to local reports, Moscow’s Zamoskvoretsky District Court approved the move for BitRiver founder Igor Runets on Wednesday, requiring him to remain in custody for at least two months while the investigation proceeds. Runets faces charges under Russian criminal law for large scale fraud allegedly committed by an organized group.

Case Tied to Equipment Deal With Energy Firm

Investigators allege Runets and his company were involved in a crypto-mining equipment agreement with Russian energy conglomerate En+ that resulted in damages equivalent to roughly $12.5 million. The case adds another layer to BitRiver’s mounting legal troubles.

Part of a Broader Pattern of Financial Trouble

This latest development builds on earlier issues facing the company. In January, a Russian court placed BitRiver’s parent company, Fox Group, under bankruptcy monitoring due to an unresolved debt tied to an unfulfilled equipment supply contract with an En+ subsidiary. Around the same period, Runets was separately charged with tax evasion and initially placed under house arrest. Authorities say further progress in the fraud case will depend on ongoing investigation work, equipment examinations and witness testimony from En+.