Russia’s Largest Crypto Mining Firm Hit as BitRiver CEO Faces Tax Evasion Allegations

Russia’s biggest crypto mining company is under renewed scrutiny after authorities detained BitRiver founder and CEO Igor Runets on multiple tax evasion charges, deepening the legal and financial pressure on a firm already constrained by sanctions and operational setbacks. Related Reading: With Bitcoin Below $80K, ARK Reframes The Narrative Around Gold The case, which is being handled by a Moscow court, has drawn attention to the risks facing large-scale crypto miners operating at the intersection of energy, regulation, and geopolitics. According to reports from Russian outlets RBK and Kommersant, Runets was detained late last week and formally charged with three counts of alleged tax evasion. Court filings indicate that the Zamoskvoretsky Court of Moscow ordered him placed under house arrest, a measure that restricts his movement while investigators proceed. His legal team has a limited window to appeal the ruling before it becomes fully enforceable. Court Case Adds Pressure On Bitriver Founded in 2017, BitRiver grew rapidly into Russia’s leading Bitcoin mining operator by building large data centers across Siberia. The company used the region’s cold climate and relatively low electricity costs to support its mining operations and to provide infrastructure services to corporate clients. At its peak, BitRiver operated thousands of mining rigs across multiple sites and accounted for a significant share of Russia’s legal crypto-mining capacity . Runets’ detention comes amid mounting challenges for BitRiver. The company was sanctioned by the US Treasury Department in mid-2022 following Russia’s invasion of Ukraine, limiting its access to Western partners and financial systems. In 2023, Japanese financial group SBI exited its mining arrangement with BitRiver following its withdrawal from Russia, dealing a blow to the firm’s international business. Financial Strain And Legal Disputes Reports suggest that BitRiver began cutting costs and scaling back parts of its operations toward the end of 2024, leading to salary payment delays affecting employees. The pressure continued into early 2025, when regional electricity provider Infrastructure of Siberia filed two lawsuits, alleging that it had paid BitRiver for equipment that was never delivered. Despite these issues, Russia’s industrial mining sector continued to generate significant revenue in 2024, with BitRiver remaining the market leader. Bloomberg estimated Runets’ net worth at around $230 million in late 2024, largely tied to his role in the crypto mining industry. Wider Implications for The Crypto Sector The case against Runets highlights the growing legal and regulatory risks facing crypto executives, both in Russia and abroad. While authorities investigate the alleged tax violations, BitRiver must also manage ongoing litigation, strained partnerships, and scrutiny linked to sanctions. Related Reading: With Bitcoin Below $80K, ARK Reframes The Narrative Around Gold As the market awaits the verdict, the case’s outcome could shape how Russian crypto mining firms approach compliance, financing, and governance in an increasingly restrictive environment. Cover image from ChatGPT, BTCUSD chart from Tradingview