BitRiver founder detained in .9M fraud case
By Olivia Stephanie from crypto.news
A Moscow court has moved BitRiver founder Igor Runets from house arrest to pretrial detention as investigators examine an alleged fraud involving nearly ₽1 billion.
The Zamoskvoretsky District Court approved the change on July 22 and ordered Runets to remain in custody for two months. The new charge became public on July 29 through reports based on court records and sources familiar with the investigation.
Runets faces an accusation under Part 4 of Article 159 of Russia’s Criminal Code, which covers fraud on an especially large scale. The charge remains an allegation, and no court has found him guilty.
Why the BitRiver founder was moved into custody
According to Pravo.ru, investigators allege that Fox Group, a company controlled by Runets, signed an equipment-supply contract with Infrastructure of Siberia in 2023. Infrastructure of Siberia is part of the En+ group.
The contract reportedly covered more than $8 million of cryptocurrency-mining machines. Investigators say the buyer transferred more than $7.9 million as an advance and expected delivery within 32 days. However, prosecutors allege that the equipment was not delivered and the payment was not returned.
The En+ dispute began as a commercial case
The dispute developed from an earlier commercial relationship between BitRiver and En+. In November 2020, the companies announced the creation of Bit+, a joint venture intended to operate cryptocurrency-mining facilities using hydropower in Russia’s Irkutsk region.
BitRiver was already facing bankruptcy pressure
The criminal investigation comes as BitRiver and related companies face financial and insolvency proceedings.
What happens next in the BitRiver fraud case
Runets is expected to remain in pretrial detention for two months unless an appeal changes the court’s order.
The company also remains subject to U.S. sanctions. The U.S. Treasury Department sanctioned BitRiver AG and ten Russian subsidiaries in April 2022.
Source : https://crypto.news/bitriver-founder-detained-in-7-9m-fraud-case/
