Hassan Maishera
TL;DR
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A Russian court has transferred BitRiver founder Igor Runets from house arrest to a pre-trial detention center.
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Runets faces fraud charges linked to an alleged 1 billion ruble ($12.5 million) crypto mining equipment deal involving En+.
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The court ordered Runets to remain in custody for at least two months while the investigation continues.
A Russian court has ordered BitRiver founder Igor Runets to be transferred from house arrest to a pre-trial detention center as authorities intensify their investigation into an alleged large-scale fraud involving one of the country's largest cryptocurrency mining companies.
According to local news outlet Bits Media, the Zamoskvoretsky District Court of Moscow approved the stricter preventive measure on Wednesday, requiring Runets to remain in custody for at least two months while investigators continue building their case.
Founder Accused of Large-Scale Fraud
Runets has been charged under Part 4 of Article 159 of the Russian Criminal Code, which covers fraud committed by an organized group on an especially large scale.
Investigators allege that Runets and BitRiver were involved in a cryptocurrency mining equipment transaction with Russian energy conglomerate En+ that caused approximately 1 billion rubles ($12.5 million) in financial damages.
Authorities have not yet disclosed additional details regarding the alleged fraudulent scheme, and the investigation remains ongoing.
The latest court ruling adds to a series of legal and financial challenges facing BitRiver and its founder.
In January 2026, a Russian court placed BitRiver's parent company, Fox Group, under bankruptcy monitoring after an unresolved $9.2 million debt linked to an unfulfilled mining equipment supply contract with an En+ subsidiary.
During the same period, Runets was also charged with alleged tax evasion and placed under house arrest pending further legal proceedings.
The decision to move him into pre-trial detention signals a tougher stance by Russian authorities as the investigation progresses.
According to the report, investigators are continuing to examine mining equipment, review evidence, and collect testimony from representatives of En+ as part of the criminal investigation.
The outcome of those examinations, along with additional witness statements, is expected to play a key role in determining the next steps in the case.
BitRiver has grown into one of Russia's largest cryptocurrency mining infrastructure providers, operating large-scale mining facilities powered by the country's abundant energy resources. The legal proceedings against its founder come as Russia continues to tighten oversight of the domestic cryptocurrency sector while expanding regulation of digital asset mining activities.
