Igor Runets, founder of Russia's largest crypto-mining company Bitriver, was moved from house arrest to pretrial detention by a Moscow court on July 29. The Zamoskvoretsky District Court ordered Runets to remain in custody for at least two months amid new fraud allegations involving $12.5 million worth of mining equipment supplied to En+ Group, a major metallurgical and energy firm.
Authorities accused Runets of orchestrating large-scale fraud under Part 4 of Article 159 of the Russian Criminal Code, claiming the equipment caused significant financial damage to En+. Law enforcement officials requested stricter detention measures due to concerns that Runets might attempt to tamper with witnesses if left under house arrest. The court agreed, emphasizing the gravity of the alleged losses and the need to secure the ongoing investigation.
Runets had already faced legal trouble earlier this year, arrested in February on tax evasion charges related to concealing assets to avoid tax debts. After those charges, he was placed under house arrest. Now, these fresh fraud accusations deepen his legal woes while Bitriver grapples with financial instability, as its parent company Fox Group defaulted on $9.2 million, pushing the mining firm toward bankruptcy.
The case will proceed with detailed examinations of the mining equipment and testimonies from En+ representatives. Bitriver and Runets’s defense team have yet to comment publicly on the latest court decision.
This material is for informational purposes only and does not constitute financial advice.
