The founder and chief executive of major Russian Bitcoin mining company BitRiver has reportedly been placed under house arrest as authorities investigate alleged tax-related offenses. The case adds to mounting pressures on the mining firm, which has faced operational and financial challenges over the past several years.
Court Orders House Arrest for BitRiver Founder
Igor Runets, founder and CEO of BitRiver, was reportedly detained late last week and formally charged with multiple counts related to tax concealment. Court records from Moscow indicate that investigators accuse Runets of hiding assets to avoid tax obligations, with three separate charges filed against him.
A Moscow district court ordered Runets to remain under house arrest shortly after the charges were brought. His legal team has a limited period to appeal the decision. If the appeal does not succeed, he will be confined to his residence for the duration of the investigation and trial proceedings.
BitRiver’s Role in Russian Bitcoin Mining
Founded in 2017, BitRiver grew into one of Russia’s largest Bitcoin mining operators, running large-scale data centers in Siberia and offering infrastructure services to institutional clients. By late 2024, Runets’ personal wealth was estimated to be in the hundreds of millions of dollars, largely tied to the firm’s mining operations.
BitRiver has faced sustained difficulties since international sanctions were imposed in 2022. The company later lost key clients, scaled back operations, and reportedly delayed employee salaries. More recently, it has been targeted by lawsuits from a regional electricity provider alleging contractual breaches, compounding its legal and financial risks.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.