BitRiver founder Igor Runets has been moved to pretrial detention over an alleged 1 billion ruble fraud involving undelivered crypto mining equipment.
Russia's largest cryptocurrency mining company, BitRiver, is facing fresh legal pressure after a Moscow court ordered its founder, Igor Runets, into pretrial detention over an alleged 1 billion-ruble ($12.5 million) fraud.
The latest charges come as the company battles bankruptcy proceedings, mounting debts, and an ongoing tax investigation.
On July 29, Moscow's Zamoskvoretsky District Court replaced Runets' house arrest with two months of pretrial detention after investigators brought new fraud charges under Part 4 of Article 159 of the Russian Criminal Code, which applies to fraud committed by an organized group or involving an especially large amount.
According to investigators, the case centers on a contract involving Fox Group, the holding company that controls 98% of BitRiver. Authorities allege the company received an advance payment from Infrastructure of Siberia, a subsidiary of Russian energy and metals giant En+ Group, to supply industrial crypto mining equipment.
Prosecutors claim the equipment was never delivered and the advance payment, worth nearly 1 billion rubles, was not returned.
Investigators also argued that Runets should remain in custody because of the scale of the alleged losses and concerns that he could influence witnesses involved in the case.
The court accepted that request and transferred him to a detention facility while the investigation continues.
The fraud case is the latest in a series of legal problems surrounding the crypto mining executive.
Runets was first detained in February 2026 on allegations related to concealing assets intended to cover tax liabilities, after which the court placed him under house arrest.
The latest ruling significantly raises the stakes by introducing separate fraud allegations tied to an equipment supply agreement.
Per court filings, the contract required mining hardware to be delivered within a specified timeframe after payment was received. Instead, prosecutors claim the equipment never arrived, and the funds were allegedly diverted elsewhere.
The fraud investigation will now focus on technical examinations of the equipment contract and testimony from representatives before prosecutors decide whether to move the case to trial.
The criminal investigation comes at a difficult time for BitRiver, which has long been regarded as Russia's largest crypto mining operator by revenue.
Founded in 2017, the company grew into one of Eurasia's largest mining infrastructure providers, operating 15 data centers with more than 533 megawatts of power capacity and over 175,000 mining servers across Siberia. The company was also sanctioned by the United States in 2022 following Russia's invasion of Ukraine.
However, BitRiver's business has come under increasing strain over the past two years.
Local reports have also suggested that a significant portion of BitRiver's senior management departed during the company's restructuring efforts.
The court's latest decision does not determine Runets' guilt, but it signals that Russian investigators view the alleged fraud case as serious enough to require stricter detention measures while the investigation proceeds.
During the pretrial detention period, prosecutors are expected to gather witness testimony, review contract documentation, and complete technical examinations related to the disputed mining equipment. Those findings will likely determine whether formal trial proceedings move forward.
While the allegations remain unproven in court, the outcome could have broader implications for Russia's crypto mining industry, where regulatory scrutiny and financial pressures are increasing alongside the sector's rapid growth.
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