BitRiver Founder Detained as Tax Evasion Case Advances

• BitRiver founder detained in Russia on multiple tax evasion and asset concealment charges.
• Moscow court orders house arrest as BitRiver faces sanctions and operational strain.
• The case adds to growing legal scrutiny of crypto executives amid global governance concerns.

Russian authorities have detained Igor Runets, the founder and chief executive of BitRiver, on allegations of tax evasion, according to local media reports. Court filings show he has been charged with multiple counts linked to concealing assets. The case adds to mounting legal and financial pressure on one of Russia’s largest Bitcoin mining companies.

Local outlets RBK and Kommersant reported on Sunday that Runets was detained on Friday. He was formally charged on Saturday. The charges relate to alleged efforts to hide assets in order to avoid paying taxes. Prosecutors have filed three separate counts against him, based on court documents cited in the reports.

Court Orders House Arrest as BitRiver Expanded Mining Operations

The Zamoskvoretsky Court of Moscow ordered Runets to be placed under house arrest on Saturday. The measure took effect the same day. His lawyers have until Wednesday to file an appeal against the ruling. If no appeal is submitted, or if it fails, the house arrest would remain in place for the duration of the case.

Runets founded BitRiver in 2017. The company grew rapidly as demand for industrial-scale Bitcoin mining expanded in Russia. BitRiver operates large data centers in Siberia, where cold temperatures help reduce cooling costs. The firm also benefits from relatively low electricity prices in the region.

BitRiver provides mining capacity for its own use and for third-party clients. Over several years, it became a major player in the Russian crypto mining market. Its facilities are designed to host high-density mining equipment. The company positioned itself as a core infrastructure provider for digital asset mining.

Runets’ personal wealth has drawn attention in recent years. In late 2024, Bloomberg estimated his net worth at about $230 million. The estimate linked most of his fortune to crypto mining ventures. The current legal case comes as BitRiver faces broader operational strain.

The company has been under pressure since mid-2022. At that time, the US Treasury Department imposed sanctions on BitRiver following Russia’s invasion of Ukraine. Those measures limited its ability to work with foreign partners. They also affected access to certain financial and technical services.

The impact of sanctions became visible in 2023. In May of that year, Japanese financial group SBI exited its Bitcoin mining partnership with BitRiver. The move was part of SBI’s wider withdrawal from Russia. The exit reduced BitRiver’s international exposure and partnerships.

Cost Cuts, Lawsuits, and Broader Legal Pressure on Crypto Executives

According to Kommersant, BitRiver introduced cost-cutting measures toward the end of 2024. Parts of its operations were scaled back. The report also said the company delayed salary payments to employees during that period. BitRiver has not publicly detailed the full scope of these measures.

Related: Coinbase 2026 Plan Builds One Global Market for All Assets

In early 2025, further legal trouble emerged for the firm. Electricity provider Infrastructure of Siberia filed two lawsuits against BitRiver. The claims allege that the provider paid for mining equipment under a contract. The equipment was allegedly never delivered.

Legal pressure on crypto executives is not limited to Russia. In the United States, a shareholder lawsuit against Coinbase directors has also advanced. A Delaware judge ruled that the case could proceed despite an internal investigation that favored dismissal.

The lawsuit was filed in 2023 by a Coinbase shareholder. It names several senior figures, including chief executive Brian Armstrong and board member Marc Andreessen. The complaint alleges insiders sold shares using material nonpublic information during the company’s direct listing.

According to court filings, insiders sold more than $2.9 billion worth of stock. Armstrong is said to have sold about $291.8 million. The case centers on Coinbase’s choice of a direct listing, which did not include a lockup period.

On Friday, Judge Kathaleen St. J. McCormick denied a motion to dismiss. She cited concerns about the independence of one committee member involved in the internal review. The decision allows the lawsuit to move forward.

Together, the BitRiver case and the Coinbase ruling highlight rising scrutiny of crypto executives. Authorities and courts are increasingly focused on compliance, governance, and financial conduct across the digital asset sector.