Founder of BitRiver Igor Runets Arrested: Siberian Operations Under Tax Evasion Investigation

Igor Runets, the founder and leader of BitRiver, one of Russia’s leading Bitcoin mining companies, has been detained on serious charges of tax evasion. The case raises questions about the country’s largest cryptocurrency mining operation, especially considering the importance of Siberian facilities in the company’s business strategy.

According to court documents from the Zamoskvoretsky Court of Moscow, Runets was taken into custody on January 30, with formal charges filed the following day. The businessman faces three counts related to concealing assets to avoid paying taxes, as revealed by PANews.

The Roots of BitRiver: Expansion Through Siberia

Founded in 2017, BitRiver quickly established itself as a powerhouse in the Bitcoin mining sector. The company built its infrastructure around several large data processing centers spread across Siberia, leveraging the region’s favorable climate conditions and competitive energy costs. This remote Siberian location strategy allowed BitRiver to expand its operations while maintaining operational efficiency.

The success of this approach was directly reflected in Runets’ personal wealth. According to Bloomberg at the end of 2024, his net worth had reached approximately $230 million, cementing his status as a prominent figure in the cryptocurrency ecosystem.

House Arrest and Legal Proceedings

Runets’ legal situation took a serious turn with the decision to detain him. He was placed under house arrest, with a strict legal schedule established. The executive’s legal team has a limited window to file appeals before the house arrest order officially takes effect starting February 4.

If the appeal is unsuccessful or not filed within the deadline, Runets will remain under house arrest throughout the judicial process. The specific charges involve systematic concealment of assets for tax evasion purposes, revealing potential irregularities in the company’s financial operations.

Implications for the Siberian Mining Industry

The case raises questions about tax practices within Russia’s cryptocurrency mining sector. With its extensive presence through data centers in Siberia, BitRiver represents a business model now under regulatory scrutiny. This development could have significant repercussions not only for the company but for the entire mining industry established in that region.