Moscow Court Jails Mining Firm Bitriver Founder Over $12.5M Fraud Probe

Stricter Measures Requested Amid Witness Tampering Concerns

A Moscow court on July 29 ordered the transfer of Igor Runets, founder of Russia’s largest cryptocurrency mining company Bitriver, from house arrest to a pretrial detention facility following new fraud charges involving approximately $12.5 million (1 billion rubles). The Zamoskvoretsky District Court granted a motion by law enforcement officials to tighten detention measures against Runets, ordering him held in custody for at least two months as the investigation proceeds.

Runets faces charges under Part 4 of Article 159 of the Russian Criminal Code, which addresses large-scale fraud committed by an organized group.

According to investigators, Runets supplied mining equipment that resulted in millions in damages to En+ Group, a major Russian metallurgical and energy conglomerate. Law enforcement officials requested the stricter detention, pointing to the severity of the financial damages and raising concerns that Runets could attempt to influence witnesses if kept under house arrest. The court concurred with the prosecution’s arguments in issuing the ruling.

Representatives for Bitriver and defense attorneys for Runets have not publicly commented on the court’s decision. Authorities said the progression of the case will depend on physical examinations of the mining equipment and witness testimony provided by En+ representatives.

The ruling marks a further escalation in Runets’s legal troubles this year. Russian law enforcement authorities first arrested the executive in February on allegations of tax evasion, accusing him of concealing assets to avoid paying tax debts. He was placed under house arrest following those charges.

The criminal case arrives as Bitriver faces mounting operational and financial distress. The company, seen as one of Russia’s top miners, is currently undergoing bankruptcy proceedings and a potential change of ownership.

Its parent company, Fox Group, carries an estimated $9.2 million in debt. Fox Group filed for bankruptcy after failing to secure sufficient funds or assets to cover its financial obligations.