For years, BitRiver symbolized how Russia’s cheap energy and cold climate could be turned into a profitable advantage in the global Bitcoin mining race. Massive data centers humming away in Siberia, drawing power from hydroelectric stations and gas fields, became a familiar image of the country’s industrial-scale crypto ambitions. That picture has now been sharply disrupted.
Igor Runets, the founder and chief executive of BitRiver, has been detained by Russian authorities and placed under house arrest on multiple tax evasion charges, marking a dramatic turn for one of the country’s most prominent figures in crypto mining.
Russian business outlet RBK reported that Runets was detained late last week, with Moscow’s Zamoskvoretsky Court formally approving charges related to the alleged concealment of assets to evade taxes. The court’s decision places Runets under house arrest while investigators proceed, adding legal uncertainty to a company already dealing with mounting financial and political pressure.
Jemi Motesho
From Rapid Expansion to Legal Scrutiny
BitRiver’s rise closely tracked the broader boom in industrial Bitcoin mining. Founded in 2017, the company scaled quickly, building large data centers across Siberia and positioning itself as a provider of mining infrastructure for both domestic and international clients. At its peak, BitRiver operated hundreds of thousands of mining rigs and consumed power on a scale comparable to heavy industry, benefiting from energy prices that made Russia one of the world’s most attractive mining destinations.
That success also made BitRiver highly visible, and visibility has increasingly come with consequences. Prosecutors allege that Runets was involved in schemes designed to conceal assets and reduce tax liabilities, charges that carry serious penalties under Russian law. While his legal team retains the option to appeal the house arrest order, the case has already intensified scrutiny of BitRiver’s finances and governance at a sensitive moment for the company.
The detention does not come in isolation. BitRiver has been under pressure for several years, particularly since the United States Treasury sanctioned the company in 2022 over its ties to Russia following the invasion of Ukraine. Those sanctions effectively cut BitRiver off from Western markets, financing, and many international partners, forcing it to refocus inward at a time when mining economics were becoming more challenging worldwide.
The fallout continued as foreign partners reassessed their exposure. In 2023, Japan’s SBI Group exited its relationship with BitRiver as part of a broader withdrawal from Russia. By late 2024, Russian media reported that the company had scaled back operations, delayed salary payments, and taken aggressive cost-cutting measures. Lawsuits followed, including claims from an electricity provider alleging that BitRiver failed to deliver equipment despite receiving advance payments.
Despite its troubles, BitRiver remains a heavyweight in Russian crypto mining. Industry estimates show that in 2024, BitRiver and rival Intelion together generated around $200 million in revenue, accounting for more than half of the country’s legal industrial mining market. BitRiver alone reportedly brought in roughly $129 million that year, operating about 175,000 mining rigs across 15 data centers and consuming more than 500 megawatts of power.
Runets’ detention underscores a broader shift in how Russian authorities are approaching the crypto sector. After years of ambiguity and selective tolerance, enforcement actions are becoming more visible, particularly where large sums, tax compliance, and energy use intersect.
