- Moscow court places BitRiver CEO under house arrest as investigators push forward with a tax evasion case in Russia.
- Legal action adds pressure on BitRiver after sanctions client exits and operational cutbacks across Siberian mining sites.
- Despite lawsuits and leadership scrutiny Russia crypto mining sector reports steady growth through 2024.
A Moscow court has ordered BitRiver founder and chief executive Igor Runets to remain under house arrest as a tax evasion investigation advances. Russian authorities detained Runets on Friday and filed charges the next day.
Court materials show investigators accuse him of concealing assets to avoid tax payments. The Zamoskvoretsky Court approved the house arrest order on Saturday. The ruling took effect immediately and allowed a short appeal window.
Moscow Court Moves Forward With Tax Case
The court restricted Runets to his residence during the investigation period. His attorneys have a week until Wednesday to appeal the decision. In case the court denies the appeal, the restriction will be applicable during the trial process. Investigators filed three charges tied to alleged tax evasion. Officials have not shared further details on hearing dates or trial timing.
Authorities continue examining financial records linked to the case. Meanwhile, the ruling limits Runets’ direct involvement in daily company operations. The decision highlights stronger enforcement around tax compliance. It also places renewed focus on large crypto businesses operating in Russia.
BitRiver Growth Faces Legal and Financial Stress
Runets founded BitRiver in 2017 as industrial Bitcoin mining expanded across Russia. The company built large-scale data centers across Siberia. It also offered mining infrastructure services to corporate clients. Over time, BitRiver became one of Russia’s largest Bitcoin mining firms. Growth benefited from access to low-cost regional energy.
In late 2024, reports estimated Runets’ net worth at about $230 million. That value largely reflected his role in crypto mining. However, BitRiver has faced rising pressure in recent years. Financial strain increased as operating conditions tightened. The current legal case adds further uncertainty for the company.
Sanctions Losses and Lawsuits Add Pressure
BitRiver’s challenges intensified after the U.S. Treasury sanctions imposed restrictions in mid-2022. The measures followed Russia’s invasion of Ukraine. They limited access to Western partners and markets. As a result, several international clients ended cooperation. In 2023, Japanese financial group SBI exited its mining arrangement and withdrew from Russia. Moreover, in 2024, Russia banned crypto mining in 10 regions from Jan 2025 to prevent energy blackouts, effective until 2031.
After these losses, BitRiver downsized and cut down operations. There are also reports of late payments of salaries in late 2024. These steps reflected tighter cash conditions. In early 2025, electricity provider Infrastructure of Siberia filed two lawsuits against the company. The claims allege advance payments for equipment without delivery.
Nevertheless, the industrial mining industry in Russia proceeded with growth in 2024, despite these setbacks. BitRiver and Intelion brought about approximately $200 million of joint revenue. BitRiver led the market with about $129 million in reported revenue. The company operated nearly 175,000 mining rigs across 15 data centers.
Most capacity remained concentrated in Irkutsk Oblast. Late in 2024, the BRICS nations such as Russia started integrating cryptocurrencies into their economies to bypass Western sanctions. BitRiver was one of the companies that seized that opportunity. BitRiver also diversified energy sources using associated gas from oil production sites.
