Crypto Scam News: BitRiver Founder Moved to Pretrial Jail
Bablu Singh Nirwan
Crypto Scam News: BitRiver Founder Faces Pretrial Detention
In the latest crypto scam news out of Russia, Igor Runets, founder of the country's largest crypto mining company BitRiver, has been moved from house arrest to pretrial detention after prosecutors expanded their case against him to include large-scale fraud charges.
The new charges relate to an alleged mining-equipment delivery scheme worth close to 1 billion rubles, roughly $13 million, according to Bits media.
Source: X WuBlockchain
Official Information
Igor Runets was formally charged under Part 4, Article 159 of the Russian Criminal Code — fraud on an especially large scale, committed by an organized group.
Moscow's Zamoskvoretsky District Court ordered his transfer from house arrest to a pretrial detention center for at least two months while the investigation continues.
Prosecutors requested the tougher measure, citing the scale of the alleged harm and concerns that Runets could pressure witnesses.
The alleged damages are estimated at nearly 1 billion rubles, tied to a mining-equipment contract worth more than $8 million.
BitRiver was founded in 2017 and operates large-scale mining infrastructure across Russia.
It had already been under house arrest since January 2026 on a separate tax evasion case.
How It Happened
In 2023, the Fox Group, a company controlled by Runets, signed a contract with Infrastruktura Sibiri, an En+ Group entity, for the supply of cryptocurrency mining equipment worth over $8 million.
The buyer paid a prepayment, but the equipment was reportedly never delivered, and the funds were never returned.
An arbitration court later opened bankruptcy proceedings against the Fox Group following a lawsuit from Infrastruktura Sibiri.
A criminal investigation into concealment of funds meant for tax payments was opened against Runets in December 2025.
He was detained on January 30, 2026, and placed under house arrest, a measure that was extended once.
On July 22, 2026, the court granted a request to change his pretrial restriction to detention after the fraud charges were added; the decision became public on July 29.
Source: X @WuBlockchain
Market Impact
This piece of crypto scam news lands at a difficult moment for BitRiver, which has already closed several offices and is undergoing bankruptcy proceedings across parts of its Russian operations.
The company has also faced U.S. sanctions since 2022, lost institutional partners, and dealt with mounting energy debts.
The move of Runets into pretrial detention adds further uncertainty for a firm that once controlled a significant share of Russia's industrial crypto mining capacity, and it could accelerate consolidation within the country's broader mining sector as remaining clients and partners reassess their exposure.
Conclusion
The latest crypto scam news confirms that Igor Runets now faces two separate legal cases in Russia, where lawmakers are also advancing new crypto regulations, one over alleged tax concealment dating back to December 2025 and another involving alleged large-scale fraud tied to an $8 million+ mining equipment dispute.
His custody status has shifted from house arrest to at least two months of pretrial detention as the fraud investigation proceeds.
Disclaimer
This article is for educational and informational purposes only and should not be considered financial or investment advice. Always do your own research using official sources before making any decisions.
