Moscow’s Zamoskvoretsky District Court has moved Igor Runets, founder of crypto-mining firm Bitriver, from house arrest to a pretrial detention facility for at least two months.
Key Takeaways
On July 29, Igor Runets was jailed over alleged $12.5 million equipment fraud against En+ Group.Crypto miner Bitriver faces bankruptcy after its parent company, Fox Group, defaulted on $9.2 million.Runets will spend at least 2 months in detention awaiting En+ Group witness testimony and equipment exams.Runets faces charges under Part 4 of Article 159 of the Russian Criminal Code, which addresses large-scale fraud committed by an organized group.
According to investigators, Runets supplied mining equipment that resulted in millions in damages to En+ Group, a major Russian metallurgical and energy conglomerate. Law enforcement officials requested the stricter detention, pointing to the severity of the financial damages and raising concerns that Runets could attempt to influence witnesses if kept under house arrest. The court concurred with the prosecution’s arguments in issuing the ruling.
The ruling marks a further escalation in Runets’s legal troubles this year. Russian law enforcement authorities first arrested the executive in February on allegations of tax evasion, accusing him of concealing assets to avoid paying tax debts. He was placed under house arrest following those charges.
Its parent company, Fox Group, carries an estimated $9.2 million in debt. Fox Group filed for bankruptcy after failing to secure sufficient funds or assets to cover its financial obligations.
