A Moscow court has ordered the transfer of Igor Runets, founder of BitRiver, from house arrest to a pretrial detention facility. The Zamoskvoretsky District Court ruled on July 29 that Runets must remain in custody for at least two months while investigators pursue charges of large-scale fraud.

Runets faces accusations under Part 4 of Article 159 of the Russian Criminal Code, covering fraud on an especially large scale committed by an organized group. Authorities link the case to roughly 1 billion rubles, or about $12.5 million, in alleged damages to En+ Group, a major Russian metallurgical and energy conglomerate.

Details of the Alleged Contract Dispute

Investigators claim that Fox Group, a company controlled by Runets, entered a 2023 contract with Infrastructure of Siberia, an En+ subsidiary, to supply cryptocurrency mining equipment valued at more than $8 million. The deal reportedly involved Antminer S19k Pro units. The buyer transferred an advance exceeding $7.9 million with an expected delivery window of 32 days.

According to the prosecution, the equipment was never delivered and the payment was not returned. Officials allege that Runets did not intend to fulfill the contract and used the funds at his discretion. These claims remain unproven in court.

The commercial dispute began earlier. In November 2020, BitRiver and En+ announced a joint venture called Bit+ to operate mining facilities powered by hydropower in the Irkutsk region. En+ supplied electricity while BitRiver managed operations. The relationship later produced civil claims. In April 2025, an arbitration court ordered Fox Group to pay approximately 954.4 million rubles over the disputed advance. Runets previously stated that the equipment had been delivered and that Fox Group planned to appeal the judgment, a position that conflicts with current investigative allegations.

Reasons for Stricter Detention Measures

Prosecutors sought the transfer from house arrest, citing the size of the alleged financial harm and the risk that Runets could attempt to influence witnesses. The court accepted those arguments. Further progress in the investigation will depend on physical examinations of mining equipment and testimony from En+ representatives.

Neither BitRiver representatives nor Runets’s defense attorneys have issued public comments on the ruling. A Moscow court also froze Runets’s ownership interests in Fox Group and related BitRiver entities in June.

Prior Legal and Financial Pressures

The fraud charges add to earlier legal action against Runets. Russian authorities first detained him in late January 2026 on allegations of tax evasion involving the concealment of assets to avoid tax debts. He was placed under house arrest at that time. Investigators later combined multiple tax-related matters into a broader proceeding.

BitRiver, widely regarded as Russia’s largest cryptocurrency mining company by revenue and infrastructure, is itself under severe strain. The firm has faced bankruptcy proceedings linked to unpaid debts for equipment, electricity, and data-center services. Its parent, Fox Group, carries an estimated $9.2 million in debt and entered bankruptcy monitoring in February 2026. Liquidation proceedings advanced later after claims tied to the En+ equipment contract. Fox Group owns the vast majority of BitRiver’s capital.

Operational challenges compounded the difficulties. A multi-year ban on crypto mining across several Russian regions forced the closure of multiple data centers. BitRiver, founded in 2017, once operated 15 facilities with more than 175,000 servers. The company has also been subject to U.S. sanctions since April 2022.

What Comes Next

Runets is expected to remain in pretrial detention for the ordered two-month period unless an appeal alters the decision. Investigators plan to review company records, equipment documentation, bank transfers, and statements from individuals connected to Fox Group and En+.

BitRiver remains a privately held company with no publicly traded token. The detention occurs against a backdrop of ongoing insolvency processes and potential ownership changes for the mining operation.