BitRiver Founder Moved to Pretrial Detention in $12M Crypto Mining Fraud Case

BitRiver founder Igor Runets has been moved to pretrial detention in connection with a $12.5 million fraud case, according to Russian authorities.

The move comes after prosecutors alleged that Runets caused damages of close to 1 billion rubles, or about $12.5 million, to En+, a Russian energy and metals group, through an undelivered crypto mining equipment deal.

Runets had previously been under house arrest as authorities reviewed claims linked to the contract, but prosecutors requested stricter custody measures due to the size of the alleged damages and concerns that Runets could influence witnesses if he remained outside detention.

The case centers on an equipment supply contract between a company controlled by Runets and En+, with investigators claiming that the full advance payment for crypto mining equipment was received but not delivered, and funds were not returned after the contract was left unfulfilled.

BitRiver's parent company, Fox Group, has also faced financial pressure, placed under bankruptcy monitoring in January over an unresolved debt of about $9.2 million, linked to an unfulfilled equipment supply contract involving En+.