Russian Crypto Mining Mogul Igor Runets Placed Under House Arrest in Major Tax Evasion Case
Moscow – Igor Runets, the high-profile founder and chief executive of Russian Bitcoin mining giant BitRiver, has been detained and formally charged with multiple counts of tax evasion, a Moscow court confirmed on Sunday. The Zamoskvoretsky Court ordered Runets placed under house arrest, a restrictive measure that took immediate effect and will remain throughout the investigation.
According to court filings reviewed by local media, the charges relate to the alleged concealment of assets to evade tax obligations. Runets’ legal team has a mid-week deadline to appeal the house arrest order. If upheld, the founder of one of Russia’s most significant crypto enterprises will remain confined to his residence for the duration of the legal proceedings.
BitRiver, founded in 2017, rose to prominence by capitalizing on Siberia’s abundant and cheap energy to power vast data centers. It quickly became a linchpin of Russia’s industrial-scale crypto mining sector. At its peak, the company was a symbol of the country’s burgeoning digital asset ambitions.
However, the company’s trajectory shifted dramatically following the imposition of U.S. Treasury sanctions in 2022, which cited BitRiver’s role in monetizing natural resources to support the Russian economy. The sanctions severed vital ties to Western markets and partners, triggering a chain of financial setbacks. Japanese financial group SBI exited its partnership in 2023, and by late 2024, reports emerged of BitRiver scaling back operations and delaying staff salaries.
The legal trouble for Runets adds a new layer of crisis. In early 2025, a Siberian energy provider sued BitRiver for allegedly failing to deliver paid-for equipment. This tax case now threatens the leadership of a firm that, despite its struggles, reportedly remained the market leader in 2024 with an estimated $129 million in revenue and control over a significant portion of Russia’s legal mining hash rate.
Industry Impact & Analysis: The detention of a key figure like Runets sends shockwaves through Russia’s crypto mining industry, which has continued to expand despite geopolitical isolation. The sector is heavily concentrated, with BitRiver and its closest competitor, Intelion, accounting for over half of the legal market’s revenue. Regulatory scrutiny on tax compliance is likely to intensify, potentially slowing investment and innovation. For BitRiver, losing its founder’s operational guidance during a complex legal battle could further destabilize its position, possibly benefiting competitors and altering the competitive landscape.
Voices from the Industry:
“This is a sobering moment for the entire sector,” said Mikhail Volkov, a financial compliance consultant based in Moscow. “It underscores that regulatory and tax authorities are now scrutinizing crypto ventures with the same rigor as traditional industries. Due diligence and transparency are no longer optional.”
“The writing was on the wall,” remarked Anya Petrova, a tech journalist covering Eastern European crypto markets. “BitRiver has been under immense pressure from sanctions and its own financial woes. This legal action against Runets feels like the next logical, if unfortunate, step in its downward spiral.”
“It’s an absolute disgrace and a targeted attack,” fired Dmitri Sokolov, a vocal crypto advocate and miner from Irkutsk. “They sanction a successful Russian company into oblivion, then arrest its founder when he’s down. This isn’t about taxes; it’s about making an example of someone who built something global from Russia. It kills any entrepreneur’s spirit.”
“The market is resilient,” noted Ksenia Ivanova, an analyst at a Singapore-based crypto fund. “Intelion and other players have been growing rapidly. While BitRiver’s dominance is challenged, Russia’s mining industry, fueled by cheap energy, will likely adapt and continue, albeit under a cloud of increased regulatory risk.”