Bitcoin Mining Firm BitRiver’s CEO Faces Tax Charges

Igor Runets, the head of one of Russia’s largest Bitcoin mining companies, BitRiver, has been placed under house arrest after being charged with tax evasion.

Key Takeaways

• Igor Runets, CEO of BitRiver, was detained and charged with three counts of concealing assets to avoid taxes.
• A Moscow court ordered him under house arrest starting February 4, pending a legal appeal.
• BitRiver, under pressure since 2022 US sanctions, has faced financial, operational and reputational challenges.
• The firm remains Russia’s largest crypto miner but is now battling lawsuits and a shrinking client base.

What Happened?

Igor Runets, founder and CEO of crypto mining giant BitRiver, has been charged with three counts of tax evasion by Russian authorities. Moscow’s Zamoskvoretsky District Court ruled that Runets will be placed under house arrest beginning February 4, unless successfully appealed by his legal team. If the appeal is rejected or not filed, he will remain confined during the investigation and any trial proceedings.

Legal Trouble for BitRiver’s High-Profile CEO

BitRiver’s chief executive was detained on January 30 and formally charged on January 31 for allegedly concealing assets to evade taxes, according to court documents cited by Russian media outlets including RBK and Kommersant.

• The charges involve three separate counts of asset concealment for tax avoidance.
• The court’s decision to impose house arrest was made swiftly and takes effect unless overturned by Wednesday.

Runets, who founded BitRiver in 2017, has seen his wealth and influence grow alongside Russia’s crypto mining sector. Bloomberg estimated his net worth at $230 million by late 2024, largely linked to his role at BitRiver. The firm grew rapidly on the back of cheap Siberian electricity and rising institutional interest in Bitcoin mining infrastructure.

BitRiver’s Long List of Setbacks

The latest arrest is just the newest chapter in BitRiver’s rocky timeline. The company was sanctioned by the US Treasury Department in mid-2022, following geopolitical tensions over Russia’s invasion of Ukraine. These sanctions cut off access to Western markets and forced major clients to exit.

• In May 2023, Japanese banking giant SBI ended its partnership with BitRiver as it pulled out of Russia.
• By late 2024, BitRiver began cutting costs, downsizing operations, and delaying employee salaries.
• In early 2025, Infrastructure of Siberia, a local electricity provider, sued BitRiver for allegedly taking payments for equipment that was never delivered.

Despite these setbacks, BitRiver remained Russia’s largest industrial crypto miner in 2024. It generated $129 million in revenue, operated 175,000 mining rigs, and consumed 533 megawatts of power across 15 data centers.

Its largest operations remain concentrated in Irkutsk Oblast, a region heavily impacted by Bitcoin mining due to power grid strain. The company has also tried to adapt by sourcing over 30 megawatts of power from associated gas at oil production sites, an effort to diversify energy inputs.

CoinLaw’s Takeaway

In my experience covering crypto regulation and enforcement, this situation with Igor Runets is a textbook example of how quickly fortunes can shift in the mining sector, especially when global politics come into play. BitRiver soared on cheap energy and explosive crypto demand, but now it is entangled in legal and financial battles on multiple fronts. This arrest could shake confidence in Russia’s crypto infrastructure just as the country tries to position itself as a mining powerhouse. If you’re watching the future of industrial Bitcoin mining in Russia, this is the story to follow.

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