BitRiver Founder Detained Pending Trial Over $1.1M Fraud Allegations

Igor Runets moved from house arrest to pre-trial detention by Moscow court on fraud charges involving En+ Group losses, as BitRiver faces bankruptcy.

Woofun AI reports that the Zamoskvoretsky Court in Moscow has transferred Igor Runets, founder of BitRiver, from house arrest to pre-trial detention for a minimum of two months. The ruling stems from charges under Part 4 of Article 159 of the Russian Criminal Code, alleging particularly large-scale fraud by an organized group that caused nearly 100 million rubles in losses to En+ Group subsidiaries through mining equipment supply issues. Investigators cited the risk of witness tampering as grounds for custody, a request the court approved. This development follows Runets' earlier arrest and house arrest in February on tax evasion suspicions related to asset concealment.

Meanwhile, BitRiver confronts bankruptcy proceedings due to its owner Fox Group's inability to repay approximately $9.2 million in debts with available assets. Representatives for both BitRiver and Runets have not yet commented on the latest court decision.