Russian authorities have detained Igor Runets, the founder and CEO of Bitcoin mining firm BitRiver, over allegations of tax evasion.
According to local media reports from Monday, Runets was taken into custody and is accused of hiding assets to avoid paying taxes.
Court documents cited by Russian outlet RBK say he faces three separate charges, which were formally filed on Saturday by Moscow’s Zamoskvoretsky Court.
The development highlights the increasing pressure on crypto and mining companies in Russia, as regulators step up scrutiny of the sector and move more aggressively against prominent industry players.
The court allegedly ordered Runets to be placed under home arrest, which went into effect the following day. His legal team has until Wednesday to appeal the decision.
If no appeal is lodged, or if it is denied, Runets will be held in house arrest for the duration of the investigation and following trial processes.
BitRiver boom pushed founder Igor Runets’ net worth to $230 million
Founded in 2017, BitRiver quickly became one of Russia’s biggest bitcoin mining companies by operating large data centers across Siberia.
The firm offers mining infrastructure to corporate clients and experienced rapid expansion during the global crypto mining boom.
BitRiver’s rise was primarily driven by its availability to cheap and conveniently available electricity, which made large-scale crypto mining incredibly profitable.
As the company expanded, its success also boosted the personal wealth of its founder, Igor Runets. By the end of 2024, Bloomberg estimated Runets’ net worth at around $230 million.
His wealth’s surge can be primarily due to the growth of his cryptocurrency mining operations.
U.S. sanctions slam BitRiver after Ukraine invasion
BitRiver’s success has been followed by a tough few years for the company. In mid-2022, the company was subjected to U.S. Treasury sanctions due to its Russia connection after the invasion of Ukraine.
The challenges did not abate in 2023, as the Japanese SBI Group terminated its connection with BitRiver due to its withdrawal from Russia.
As of late 2024, reports indicated that BitRiver was facing financial challenges, thus having to reduce its spending and operations, including delayed salary payments.
The issues have continued to spill in 2025, as an electrical company filed a lawsuit claiming BitRiver had received an advance payment for equipment but did not provide the same.