BitRiver Founder Moved to Pretrial Detention Facility Amid Fraud Allegations

Russia's largest Bitcoin miner, BitRiver, has been embroiled in controversy after its founder, Igor Runets, was moved from house arrest to a pretrial detention facility by a Moscow court. The decision comes as investigators continue to build their case against Runets, who is accused of committing large-scale fraud worth nearly 1 billion rubles (approximately $12 million) through his company's dealings with En+, a group of Russian metallurgical and energy companies.

Prosecutors charged Runets under Part 4 of Article 159 of the Russian Criminal Code, which covers large-scale fraud committed by an organized group. Investigators allege that a company controlled by Runets received full advance payment from an En+ subsidiary for mining equipment, but the equipment was never delivered and the funds were never returned.

The court's decision to tighten custody on Runets comes as concerns grow about his ability to pressure witnesses in the case. Law enforcement officials pushed for the transfer, citing both the scale of the alleged damages and their concerns about potential witness intimidation.