Igor Runets, founder and CEO of BitRiver, one of Russia’s largest Bitcoin mining companies, has been formally charged with large-scale fraud and placed in pretrial detention following a recent court decision in Moscow. Previously under house arrest since January on tax evasion accusations, Runets was moved to a detention facility after fresh allegations emerged concerning the mishandling of crypto mining hardware supplies.
The Moscow Zamoskvoretsky District Court approved the stricter detention measures on July 22, reflecting escalating legal pressure on the crypto executive. Sources cited by RBC estimate the financial damages linked to the fraud at nearly 1 billion rubles, which translates to over $12.5 million. The charges revolve around an incomplete or failed delivery of mining equipment ordered by companies affiliated with En+ Holding, Russia’s major energy and metals producer that heavily utilizes hydroelectric power.
Runets is now expected to remain in custody for at least two months while investigators dig deeper into his role and the scope of the case. This development marks a significant tightening of the situation for the Russian crypto entrepreneur, whose company BitRiver has been a key player in the country’s mining sector. The case also shows growing scrutiny of crypto-related business practices within Russia’s judicial system.
This material is for informational purposes only and does not constitute financial advice.
