Igor Runets, founder of BitRiver — Russia's largest cryptocurrency mining company — has been transferred from house arrest to a pretrial detention facility as investigators pursue a large-scale fraud case tied to an undelivered crypto mining equipment deal.

Moscow Court Approves Stricter Detention

On July 29, the Zamoskvoretsky District Court of Moscow approved the move to place Runets in a pretrial detention center. Under the ruling, he must remain in custody for at least two months while the investigation continues.

Runets had previously been under house arrest while authorities reviewed allegations connected to a mining equipment supply contract. Prosecutors are pursuing charges under Part 4 of Article 159 of the Russian Criminal Code, which addresses large-scale fraud allegedly committed by an organized group.

Investigators assert the case caused damages of close to 1 billion rubles, approximately $12.5 million, to En+, a Russian energy and metals conglomerate controlled by oligarch Oleg Deripaska. The dispute centers on an equipment contract between a company controlled by Runets and a subsidiary of En+.

Authorities claim that Runets's company received the full advance payment for cryptocurrency mining equipment but never delivered the machines. According to investigators, the funds were also not returned after the contract went unfulfilled.

Equipment Deal at the Center of the Case

Law enforcement officials sought stricter custody measures due to the magnitude of the alleged damages. They also raised concerns that Runets could influence witnesses if allowed to remain outside detention.

The court granted the request and placed him in custody as investigators continue gathering evidence. The case's further progress is expected to hinge on equipment examinations and witness testimony from En+ representatives.

As of the time of reporting, representatives for BitRiver and Runets's legal team had not issued any public response to the court ruling. The absence of a statement leaves the company's official position unclear as proceedings advance.

This detention order follows earlier legal difficulties for Runets in 2026. In February, authorities arrested him on suspicion of concealing assets intended to cover tax debts.

Fox Group Faces Bankruptcy Proceedings

BitRiver's parent company, Fox Group, has also come under significant financial strain. In January, a Russian court placed the company under bankruptcy monitoring over an unresolved debt of approximately $9.2 million.

That debt was likewise tied to an unfulfilled equipment supply contract involving an En+ subsidiary. The overlapping legal disputes have placed BitRiver's corporate structure, supply agreements, and finances under heightened scrutiny.

The financial pressure comes on top of earlier international complications. In April 2022, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned BitRiver for operating in Russia's technology sector, part of measures targeting entities supporting Russia's military-industrial supply chain. BitRiver at the time disputed the designation, arguing it was a private commercial company providing data center hosting services.

Russia Escalates Oversight of Crypto and Tech Sectors

BitRiver has been among Russia's most prominent cryptocurrency mining enterprises, bolstered by access to Siberian hydroelectric power resources and cold-climate data center sites that make large-scale mining operations commercially viable. The company has hosted clients from across the global mining industry, giving the case relevance beyond Russia's domestic market.

The fraud case unfolds as Russian authorities continue to tighten oversight across the cryptocurrency, technology, and digital communications sectors. Russia's State Duma has been advancing legislation to formally regulate cryptocurrency mining, including licensing frameworks for mining operators and restrictions on foreign-issued digital assets. Against that backdrop, the criminal proceedings against the head of the country's largest mining company add a high-profile test case for how existing commercial and criminal law applies to crypto-related supply disputes.

In a parallel crackdown, Russia has charged Telegram founder Pavel Durov with aiding terrorism and placed him on an international wanted list. The Federal Security Service accused Telegram of failing to remove channels, chats, and bots allegedly used by Ukrainian intelligence services.

Durov rejected Moscow's actions, describing them as a "sad spectacle of a state afraid of its own people." Telegram also dismissed the charges through its social media channels.

Russian authorities have additionally restricted parts of Telegram's service as part of a broader push to steer users toward state-backed domestic platforms. These measures have drawn further scrutiny to Moscow's stance on foreign technology services and digital communication tools.