BitRiver Founder and CEO Igor Runets Detained on Tax Evasion Charges
The founder and chief executive of Russian bitcoin mining firm BitRiver, Igor Runets, has been detained by Russian authorities and charged with multiple counts of tax evasion, according to local media reports.
Key Takeaways:
- BitRiver founder and CEO Igor Runets has been detained in Russia and placed under house arrest on multiple tax evasion charges.
- The case adds to mounting pressure on BitRiver following sanctions, lost partners and operational cutbacks.
- Once a major beneficiary of Russia’s cheap energy, the firm now faces legal, financial and reputational challenges.
Russian outlet RBK reported on Sunday that Runets was detained on Friday and later charged with three counts related to the alleged concealment of assets to evade taxes.
Citing court materials, the reports said the charges were formally filed on Saturday by Moscow’s Zamoskvoretsky Court.
Court Orders BitRiver CEO Igor Runets Placed Under House Arrest
The court reportedly ordered Runets to be placed under house arrest, a decision that took effect the same day. His legal team has until Wednesday to appeal the ruling.
If no appeal is filed, or if it is rejected, Runets will remain under house arrest for the duration of the investigation and any subsequent trial proceedings.
Cointelegraph has reached out to Runets for comment, but no response had been received at the time of publication.
Founded in 2017, BitRiver grew into one of Russia’s largest bitcoin mining operators, running large-scale data centers across Siberia and offering mining infrastructure services to corporate clients.
The company expanded rapidly during the crypto mining boom, benefiting from access to relatively cheap energy in the region.
In late 2024, Bloomberg estimated Runets’ net worth at roughly $230 million, largely tied to his role in the crypto mining sector.
BitRiver’s fortunes have been under pressure in recent years. The company was sanctioned by the US Treasury Department in mid-2022 over its ties to Russia following the invasion of Ukraine. The sanctions restricted its access to Western markets and partners.
In 2023, Japanese financial group SBI exited its relationship with BitRiver as it withdrew from Russia.
According to Kommersant, BitRiver later cut costs, scaled back operations in late 2024 and delayed salary payments to staff.
The firm’s difficulties continued into 2025, when electricity provider Infrastructure of Siberia filed two lawsuits alleging BitRiver failed to deliver equipment despite receiving advance payments.
BitRiver and Intelion Generate $200M in 2024
As reported, Russia’s industrial crypto mining sector continued to expand in 2024, with the country’s two largest operators, BitRiver and Intelion, generating a combined $200 million in revenue and accounting for more than half of the legal market.
BitRiver remained the market leader, reporting revenue of roughly $129 million in 2024 and operating around 175,000 mining rigs across 15 data centers, drawing 533 megawatts of power.
The company’s largest footprint remains in Irkutsk Oblast, Russia’s first major bitcoin mining hub, where growing activity has strained the regional power grid, while additional facilities span multiple Siberian and regional locations.
BitRiver has also begun diversifying its energy sources, with more than 30 MW now supplied by associated gas from oil production sites.
Intelion posted revenue of about $78 million, using 298 MW of power, and recorded the fastest growth among major miners.
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