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.

Forbes Russia, citing RBC and case materials, identified the machines as Antminer S19k Pro units. The report said the buyer sent a formal demand for delivery or repayment before cancelling the agreement.

Investigators claim Runets “did not intend to fulfil the contract” and used the money at his discretion. That account reflects the prosecution’s position and has not been proven at trial.

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.

At the time, an official En+ company release described BitRiver as the operator of Russia’s largest data centre offering colocation services for Bitcoin miners. En+ was responsible for supplying electricity, while BitRiver managed mining operations.

However, the relationship later led to several civil claims. In April 2025, the Arbitration Court of the Irkutsk Region reportedly ordered Fox Group to pay Infrastructure of Siberia ₽954.4 million over the disputed advance payment.

Earlier reporting on the En+ claims said the court also restricted access to some funds and equipment during the dispute.

Runets disputed the claimant’s account in May 2025. He said the equipment “was delivered” and stated that Fox Group intended to appeal the judgment. His claim directly conflicts with the current investigative allegation that the machines never arrived.

BitRiver was already facing bankruptcy pressure

The criminal investigation comes as BitRiver and related companies face financial and insolvency proceedings.

Notably, BitRiver faced bankruptcy proceedings over unpaid debts after creditors brought claims linked to equipment, electricity and data-centre services. The process imposed restrictions on several accounts and placed the company under court-supervised financial review.

Forbes reported that Fox Group entered bankruptcy monitoring in February 2026. A court reportedly opened liquidation proceedings in late May after Infrastructure of Siberia sought repayment connected to the equipment contract.

Runets had already been placed under house arrest in late January. That earlier case concerned allegations that BitRiver-related entities concealed funds that should have been available for tax collection. Investigators later added two tax cases and combined several matters into a broader proceeding.

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. Investigators may use that period to examine company records, equipment documentation, bank transfers and testimony from people connected to Fox Group and En+.

A Moscow court also froze Runets’s ownership interests in Fox Group and several BitRiver-related entities in June, according to Forbes. The restrictions may remain in place while investigators examine whether company assets relate to the alleged offence.

BitRiver remains a privately held company, and it has no verified publicly traded token linked to its operations. Therefore, no direct crypto-market reaction can be reliably attributed to Runets’s detention.

The company also remains subject to U.S. sanctions. The U.S. Treasury Department sanctioned BitRiver AG and ten Russian subsidiaries in April 2022. Treasury said cryptocurrency-mining companies could help Russia monetise its energy resources.

In related coverage, BitRiver previously claimed Russia could overtake the U.S. in Bitcoin mining. That forecast was a company claim and has not been confirmed by independent mining data.

Why is western Europe seeing so many wildfires now?

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Bitcoin price recovered 2.8% from an intraday low of $62,850 to around $64,650 on July 29 as traders positioned for the Federal Reserve’s interest rate decision.

Bitcoin price recovers before the Fed decision

According to data from crypto.news, Bitcoin (BTC) price rose from $62,850 to an intraday high near $64,775 before settling around $64,650. The recovery followed several sessions of selling across cryptocurrencies and technology stocks.

The $62,850 low aligned with Bitcoin’s 200-day EMA, making the level an important test of its broader market structure. Short-term momentum indicators had also entered oversold territory following BTC’s decline from last week’s high near $66,700.

Buyers entering around the long-term average helped trigger a rapid return toward $64,500. Short sellers who opened positions during the decline may also have contributed to the rebound by closing trades as Bitcoin moved higher.

Bitcoin’s relative strength was notable because Asian technology shares remained under pressure. SK Hynix fell sharply after its earnings missed elevated market expectations, contributing to a wider sell-off in chip and AI-linked stocks. South Korea’s Kospi dropped 6%, while pressure also spread to several US semiconductor names.

BTC had traded closely with AI-related equities during much of July. Its recovery during the latest technology rout suggests that short-term crypto selling pressure may be easing, although one session is not enough to establish a lasting decoupling.

FOMC positioning could decide the $65K breakout

The Federal Reserve’s decision is the main catalyst facing Bitcoin. Markets have mostly priced in an unchanged federal funds rate, but swap pricing indicated roughly a one-in-three chance of a 25-basis-point increase before the announcement.

Citadel Securities has argued that the Fed could raise rates to respond to persistent inflation. Such an outcome would likely strengthen the dollar and Treasury yields, creating another obstacle for Bitcoin and other risk assets.

A rate hold could reduce immediate pressure, but the market will also track the Fed’s statement and Chair Kevin Warsh’s comments. A hold accompanied by warnings about inflation could limit Bitcoin’s upside, while a softer policy outlook may help BTC clear $65,000.

Bitcoin’s July 31 options expiry carries approximately $9.61 billion in notional open interest, with calls accounting for 116,260 BTC and max pain at $64,000.

The call-heavy positioning does not guarantee a rally. However, a break above nearby resistance could prompt dealers to rebalance their hedges and force short sellers to cover, potentially strengthening a post-FOMC move.

Bitcoin must close above $65,200

Bitcoin’s 4-hour chart shows that the recovery has not yet reversed the short-term bearish setup. BTC remains below the Supertrend resistance at approximately $65,198, making the $65,000–$65,200 range the first confirmation level for buyers.

The average directional index stands at 25.13. A reading above 25 indicates that the next directional move could develop enough strength to extend, but the indicator does not determine whether that move will be bullish or bearish.

A 4-hour close above $65,200 would weaken the current sell signal and expose $65,800–$66,200. Bitcoin would then need to clear $66,700, the previous weekly high, to establish a stronger sequence of higher highs.

The daily Ichimoku chart presents another obstacle. Bitcoin is trading near the lower edge of the cloud around $64,490 and below the conversion line near $64,849. A daily close above this area would improve the short-term outlook, but the asset still needs to move through the wider cloud before confirming a sustained trend reversal.

Chaikin Money Flow is positive at 0.03, showing that buying pressure has returned modestly. The reading remains close to zero, however, and does not yet point to strong accumulation.

Liquidation clusters leave BTC exposed in both directions

CoinGlass’ three-day liquidation heatmap shows a dense liquidity band around $64,400–$64,700, where Bitcoin was trading at the time of the chart. This nearby concentration may contribute to volatile price swings before and immediately after the Fed announcement.

Further liquidity is visible near $65,000–$65,300, followed by a larger group of positions around $65,800–$66,200. A confirmed break above $65,200 could therefore pull Bitcoin toward these higher liquidation levels as bearish positions are forced to close.

The downside contains a similarly important concentration near $62,500. Losing $64,000 would increase the risk of another test of $63,000, followed by the $62,000–$62,500 support area.

Crypto analyst Ted Pillows also identified $65,000 as the decisive near-term level. He warned that failure to reclaim it could send Bitcoin back toward $62,000–$62,500.

Michael van de Poppe offered a more bullish assessment, describing the recovery as a “very solid bounce” and arguing that Bitcoin could continue higher if it maintains its recent strength.

ETF flows and US policy remain downside risks

US spot Bitcoin ETF demand remains an important weakness behind the current setup. More than $500 million reportedly left the products during a 4-day run of outflows, removing a source of spot demand that had supported the previous advance.

The FOMC outcome will directly affect US investors because higher rates increase the relative appeal of cash and short-term government debt. A surprise hike could also raise financing costs and reduce demand for leveraged cryptocurrency positions.

Washington’s stalled crypto legislation adds another source of uncertainty. Polymarket traders recently placed the probability of the CLARITY Act becoming law in 2026 at roughly 34%, down from higher levels earlier in July. The bill has faced disagreements over ethics restrictions and stablecoin-related provisions.

Bitcoin can push through $65,000 if the Fed avoids a hawkish surprise and buyers secure a close above $65,200. Without renewed ETF inflows, however, the move would remain dependent on derivatives positioning and short covering, leaving $62,500 exposed if the breakout fails.

Russia’s central bank has proposed detailed rules for cryptocurrency exchanges, digital asset depositories and market registration ahead of the country’s regulated crypto market launch in September.

According to the Bank of Russia, the draft regulations establish the operating framework for cryptocurrency exchanges, digital depositories and digital currency account providers that will function under the country’s new digital currency law, which is scheduled to take effect on Sept. 1.

The proposals, published for regulatory impact assessment, complement the recently adopted federal law “On Digital Currency and Digital Rights,” which passed the State Duma earlier this month and is awaiting approval from the Federation Council before being signed into law by President Vladimir Putin. 

The legislation forms the legal foundation for Russia’s regulated cryptocurrency market and places the central bank at the center of oversight.

Bank of Russia sets operating standards for crypto platforms

In a statement announcing the draft regulations, the Bank of Russia said it has created the conditions for organized trading in digital currencies and digital rights. The package includes rules covering cryptocurrency exchanges, digital asset issuers, digital depositories and digital currency accounts.

Under the proposed framework, cryptocurrency exchanges will be allowed to establish their own trading procedures while independently calculating market prices and weighted average values for the digital assets listed on their platforms.

A separate instruction introduces requirements for digital depositories, a newly defined category of institutions responsible for maintaining records of cryptocurrency holdings and transactions.

According to the central bank, digital depositories will need minimum equity ranging from 50 million to 250 million rubles, or about $600,000 to $3 million, depending on the services they provide. Institutions working with open distributed ledger systems or offering post-trade settlement services will face different capital requirements.

The regulator also said the capital backing those businesses must remain liquid and consist of financial assets with high credit quality.

Alongside exchange and custody rules, the proposals establish procedures for opening and maintaining digital currency accounts that licensed market participants will use once the new regulatory framework becomes operational.

Crypto registration powers move to the central bank

One of the draft regulations formally authorizes the Bank of Russia to establish and maintain official registers for cryptocurrency market participants.

According to the regulator, the registration system will cover operators of platforms used to issue, store, and trade cryptocurrencies, as well as digital currency exchange organizations and digital depositories operating under the requirements of the federal law.

Russia’s lower house of parliament approved the digital currency legislation in its second and third readings on July 21 after lawmakers revised several provisions during the legislative process. Earlier committee revisions removed a proposal that would have required cryptocurrency holders to disclose wallet addresses. Instead, users will report balances and transaction volumes, while certain large transfers abroad or to third parties may still face delays of up to 48 hours under the new framework.

The legislation also classifies cryptocurrencies as property for legal purposes while continuing to prohibit their use for domestic payments, leaving the ruble as Russia’s official payment instrument inside the country.

Transition period extends into 2027

Although the main legal framework is expected to begin taking effect on Sept. 1, some technical provisions contained in the central bank’s regulations will only become effective during the second half of 2027.

The law also provides a transition period allowing exchanges, brokers, management companies, clearing organizations and other financial institutions to complete registration, secure approvals and bring their internal systems into compliance before full implementation.

Several Russian financial institutions have already started preparing products for the regulated market. Earlier this month, Sberbank said it plans to launch cryptocurrency wallet and custody services after the framework becomes effective. VTB, T-Bank and Alfa-Bank have also announced work on digital asset custody infrastructure, while Moscow Exchange has expressed interest in launching regulated cryptocurrency services.

Russia’s Finance Ministry has previously estimated that domestic cryptocurrency trading reaches roughly 50 billion rubles, or about $640 million, each day, with much of the activity occurring outside regulated financial channels. The new framework is intended to bring trading, custody and related services under licensed supervision.

Investor access remains limited under the new framework

Retail participation will continue to face restrictions under the digital currency law.

Non-qualified investors will only be permitted to purchase the most liquid and highly capitalized cryptocurrencies, including Bitcoin, Ethereum and Tether’s USDT, through regulated intermediaries. 

Earlier versions of the legislation set an annual purchase limit of 300,000 rubles for non-qualified investors, while the latest regulatory framework limits annual purchases to about $4,000 for eligible retail participants.

Qualified investors will be permitted to access a wider range of products under separate rules.

While cryptocurrencies remain prohibited for ordinary domestic payments, the legislation allows approved digital assets to be used in certain cross-border transactions. 

Russian authorities have already tested cryptocurrency settlements for international trade under an experimental legal regime, and lawmakers previously said the regulated framework is designed to give companies conducting foreign business a legal route to use digital assets within approved conditions.

The Bank of Russia said all draft regulations have been published for public review as part of the regulatory impact assessment process before they are finalized.