BitRiver founder Igor Runets detained over alleged RUB 1B fraud tied to mining equipment deals

Igor Runets, the founder and CEO of BitRiver, just went from house arrest to a jail cell. A Moscow court ordered his formal detention on July 22, upgrading his pretrial custody after prosecutors tacked on new fraud charges involving nearly 1 billion rubles, roughly $13 million, related to the alleged supply of mining equipment to entities connected to the En+ Group. Runets had been under house arrest since January 30, when he was initially picked up on tax evasion charges. The fraud allegations represent a significant escalation, and they land at a moment when BitRiver’s parent company is already circling the drain financially. From tax evasion to fraud: the charges pile up The original case against Runets fell under Article 199.2 of the Russian Criminal Code, which deals with concealment of assets to avoid paying taxes. That charge alone carries a potential prison sentence of up to three years. But the new fraud allegations are a different animal entirely. Prosecutors claim Runets orchestrated a scheme involving mining equipment that was supposedly delivered to structures linked to En+ Group, the Russian energy and metals conglomerate. The alleged damages from that scheme total ne...