Igor Runets, the founder and chief executive of Russian Bitcoin mining giant BitRiver, has been formally charged with large-scale fraud and transferred from house arrest to a pretrial detention facility in Moscow.

Runets, who was initially detained in late January 2026 on tax evasion allegations, had spent nearly six months under house arrest before the escalation of his detention regime. The case marks one of the most prominent criminal proceedings against a senior figure in Russia's cryptocurrency mining sector, an industry that has grown rapidly in the country's energy-rich eastern regions but remains in a legally complex position following the passage of federal mining legislation in August 2024.

New Fraud Charges Approved by Moscow Court

The Zamoskvoretsky District Court of Moscow approved Runets' transfer to a dedicated pretrial detention facility on July 22, as reported by the Russian business news outlet RBC on Wednesday. The court granted a motion from security officials who cited the magnitude of financial damages and expressed concerns that Runets might exert pressure on witnesses.

Runets has been charged under Part 4 of Article 159 of the Russian Federation's Criminal Code, which covers "large-scale fraud committed by an organized group," according to Bits.media. The charges relate to the failed supply of cryptocurrency mining hardware ordered by companies affiliated with En+ Holding, a major Russian energy and metals producer that relies heavily on hydroelectric power generation. The involvement of En+ — one of Russia's largest energy conglomerates — underscores the extent to which major industrial players have sought to participate in cryptocurrency mining as a means of monetizing surplus electricity capacity, particularly in Siberia, where abundant hydroelectric power has attracted mining operations since the mid-2010s.

Two knowledgeable sources cited by RBC estimated the financial damages at nearly 1 billion Russian rubles, equivalent to more than $12.5 million.

The BitRiver chief will remain in pretrial detention for at least two months while the investigation continues. His defense team and legal representatives for BitRiver have not yet commented on the court's decision.

Further developments are expected to depend on the results of forthcoming examinations of the mining equipment in question and testimonies from employees of En+, which was founded and is controlled by Russian oligarch Oleg Deripaska.

From Industry Leader to Criminal Defendant

Runets, a 40-year-old entrepreneur born in Odessa, established BitRiver in 2017. The company operates large-scale data processing centers and markets itself as an eco-friendly cryptocurrency mining enterprise. While headquartered in Zug, Switzerland, BitRiver's primary operations are based in energy-rich Russian regions such as Siberia, which offer favorable climatic conditions for mining activities. At its peak, BitRiver was among the most prominent commercial mining hosting providers in Russia, marketing its access to low-cost hydroelectric power to international clients.

Runets was detained in Moscow at the end of January 2026 and charged with multiple counts of tax fraud, including allegations of concealing assets to evade taxation. He was immediately placed under house arrest for the duration of those proceedings.

His detention coincided with the launch of formal bankruptcy monitoring proceedings against entities within the BitRiver holding. The petition against BitRiver's main owner and managing entity, Fox Group, was filed by Infrastructure of Siberia, an affiliate of Deripaska's En+. Fox Group has reportedly accumulated an estimated debt of approximately $9.2 million and has been unable to secure sufficient funds to repay it, putting BitRiver at risk of a change of ownership.

A lawsuit filed by Infrastructure of Siberia in 2025 alleged that BitRiver received payment for mining equipment from the En+ firm — its key electricity supplier — but failed to deliver the hardware.

In February 2026, Russia's Federal Tax Service (FNS) filed for the bankruptcy of a BitRiver subsidiary responsible for a 100 MW mining project in the country's Far East, located in the Republic of Buryatia. The project was further complicated by seasonal restrictions on mining imposed in the region — part of a broader regulatory framework introduced under Russia's 2024 mining law that authorizes authorities in certain energy-strained areas to limit or prohibit mining during peak consumption periods — and is believed to have contributed significantly to the company's financial deterioration.

These challenges compounded difficulties stemming from Ukraine war-related sanctions imposed by the U.S. Treasury Department in 2022, which targeted BitRiver as part of a broader effort to restrict Russian revenue streams from cryptocurrency activities. BitRiver reportedly began cutting budgets and scaling back operations in late 2024 as a result.