BitRiver Founder Detained as Russia's Largest Crypto Miner Faces Fraud Charges

Russian authorities have tightened detention measures against Igor Runets, founder of BitRiver, the country's largest crypto mining company. The Zamoskvoretsky District Court moved Runets from house arrest to a pretrial detention facility on July 29th.

The court's decision comes as investigators continue building their case against Runets under Part 4 of Article 159 of the Russian Criminal Code, which covers large-scale fraud committed by an organized group. Prosecutors allege that BitRiver received close to 1 billion rubles in advance payment from En+, a group of Russian metallurgical and energy companies, but failed to deliver the mining equipment.

The court's decision to tighten custody was based on both the scale of the alleged damages and concerns that Runets could pressure witnesses in the case. This is not the first time Runets has faced custody restrictions; he was arrested in February on suspicion of concealing assets meant to cover tax debts, placing him under house arrest over alleged tax evasion.