The founder and CEO of BitRiver, the Russian bitcoin mining company, Igor Runets, has been detained by the Moscow Zamoskvoretsky Court and charged with multiple counts of tax evasion. It is reported that the defendant has been placed under house arrest; no further details of the charges have been disclosed.
The charges stemmed from Part 11 of Article 199.2 of the Russian Criminal Code, which addressed the concealment of funds or property of an organization intended for tax, fee, and insurance premium collection. Runets’ legal team has until Wednesday to appeal the ruling; if it’s not done or if the appeal gets rejected, Runets will have to remain under house arrest until the investigation and also during any subsequent trial proceedings. The case adds to the mounting pressure on the company following sanctions, lost partners, and operational cutbacks. Moreover, Russia is in discussion to renew its crypto regulations; if approved under the new law, unregistered crypto exchange operators could face fines or jail time.
BitRiver’s Consequent Allegations
BitRiver was founded in 2017; ever since then, it has grown into one of the largest bitcoin mining operators in Russia. BitRiver has run large-scale data centres across Siberia and offered mining infrastructure services to corporate clients as well. The company has expanded rapidly during the crypto mining boom by benefiting from access to relatively cheaper energy in the region. In late 2024, Bloomberg reported Runets’ net worth to be roughly $230 million, which was largely tied to his role in the crypto mining sector.
BitRiver’s fortunes have been under pressure for 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 sanction restricted the company’s access to Western markets and partners. In 2023, the Japanese financial group SBI exited its ties with BitRiver as it withdrew from Russia. BitRiver later cut costs and scaled back operations in late 2024, though it delayed the salary payments to the staff.
However, the firm’s difficulties continued through 2025, the electricity provider, Infrastructure of Siberia, filed two lawsuits against BitRiver, alleging that BitRiver failed to deliver equipment despite receiving the advance payments. Analysts opined that the charges on one of the largest crypto mining operators in the region could cause some serious effects on the Russian crypto sector as a whole. BitBlitz, a X social handle, pointed out the same through an X post.
Sustained Momentum Amid the Disputes
However, according to the data, it is reported that Russia’s industrial crypto mining sector continued to expand in 2024 with the combined efforts of the country’s two largest operators, BitRiver and Intellion. Their partnership has generated a combined $200 million in revenue, and it accounted for more than half of the legal market. BitRiver remains a market leader despite its frequent disputes and allegations. Although detailed public financial reports have not yet been released, the firm reportedly earned approximately $230 million in 2024.
It operates around 175,000 mining rigs across 15 data centers, drawing 533 megawatts of power. The company’s largest footprint is in Irkutsk Oblast, Russia’s first major bitcoin mining hub. It was here that the growing activities have strained the regional power grid, while the additional facilities span multiple Siberian and regional locations. BitRiver has begun diversifying its energy sources, with more than 30MW now supplied by the associated gas from oil production sites.
