Nikolas Sargeant
The founder and CEO of Russian Bitcoin mining firm BitRiver, Igor Runets, has been detained and charged with multiple counts of tax evasion, according to reports from Moscow court documents as authorities pursue allegations of concealing assets to avoid tax obligations.
Runets was detained Friday and faces three charges for allegedly concealing assets to evade taxes, according to reports from local media outlets RBK and Kommersant on Sunday. The outlets cited court documents from the Zamoskvoretsky Court of Moscow indicating Runets was charged Saturday and ordered placed under house arrest the same day.
Runets' legal team has a limited window to appeal the house arrest before it becomes fully enforceable Wednesday. If an appeal is unsuccessful or not filed, Runets will remain confined to his residence for the duration of the case proceedings. The charges represent a significant escalation in scrutiny of one of Russia's most prominent cryptocurrency mining operations.
BitRiver was founded in 2017 and has become among the most significant names in Russian Bitcoin mining, operating large-scale data centers across Siberia that also provide cryptocurrency mining services to other companies. In late 2024, Bloomberg reported Runets' net worth had reached approximately $230 million from his involvement in crypto mining operations.
The firm has confronted multiple challenges since being hit with sanctions by the US Treasury Department in mid-2022 in response to the Russia-Ukraine conflict. The sanctions designated BitRiver for providing mining services that enable Russia to monetize natural resources while evading international restrictions.
In May 2023, one of BitRiver's major clients, Japanese banking giant SBI, stopped using the firm's infrastructure for Bitcoin mining after withdrawing from Russia due to the ongoing conflict. The departure eliminated a significant revenue stream for BitRiver and signaled growing international isolation of Russian cryptocurrency operations.
The Kommersant report claims BitRiver began implementing cost cuts across the company and scaled back operations toward the end of 2024, followed by delayed salary payments to employees. The financial difficulties suggest the company has struggled to maintain profitability amid sanctions and reduced client base.
In early 2025, the firm was hit with two lawsuits by electricity provider Infrastructure of Siberia, alleging BitRiver had paid the company under a contract to purchase equipment but never delivered it. The legal disputes add to mounting pressures facing the mining operation as it navigates sanctions, client departures, and now criminal charges against its leadership.
