Russia's Top Crypto Miner Detained in 1 Billion Ruble Fraud Case

Law enforcement officials pushed for Runets's transfer to detention, citing both the scale of the alleged damages and concerns that he could pressure witnesses. The court sided with investigators and granted the motion. Representatives for BitRiver and lawyers for Runets have not issued a public response to the ruling. Investigators said the case will now hinge on equipment examinations and witness testimony from En+.

This is not Runets's first legal trouble this year. Russian authorities arrested him in February on suspicion of concealing assets meant to cover tax debts, placing him under house arrest over alleged tax evasion. The legal case adds to a difficult stretch for BitRiver, which has ranked first among Russian mining companies by revenue. The company is now facing bankruptcy and a change in ownership. Fox Group, BitRiver's owner, is estimated to carry roughly $9.2 million in debt. The company filed for bankruptcy after determining it lacked sufficient funds or assets to repay what it owes.

The detention of BitRiver's founder adds uncertainty to a sector already under regulatory pressure. The case could affect the broader confidence in Russia's crypto mining ecosystem, which relies on cheap energy and industrial-scale operations. For now, the next concrete marker is the equipment examination and witness testimony expected in the coming weeks. The court has scheduled a review of Runets's detention on or before the two-month mark.