BitRiver Founder Detained on $7.9M Fraud Allegations

BitRiver's founder Igor Runets has been moved from house arrest to pretrial detention for two months in connection with an alleged $7.9 million fraud case.

The Moscow court made this decision on July 22, and the new charge was confirmed on July 29 through reports based on court records and sources familiar with the investigation.

Runets faces charges under Part 4 of Article 159 of Russia's Criminal Code, which covers large-scale fraud.

The dispute began as a commercial case between BitRiver and En+, a company that supplied electricity to BitRiver. In November 2020, they created a joint venture called Bit+ to operate cryptocurrency-mining facilities using hydropower in Russia's Irkutsk region.

However, the relationship led to several civil claims, with En+ reporting an advance payment of over $7.9 million for equipment that was never delivered.