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Russian Bitcoin mining company BitRiver CEO has been arrested on suspicion of tax evasion.
ChainCatcher reports that, according to Cointelegraph, Igor Runets, founder and CEO of Russian Bitcoin mining company BitRiver, has been detained on suspicion of tax evasion.
According to documents from the Zamoskvoretsky Court in Moscow, Runets was detained on January 30, and on January 31, he was charged with three counts of concealment of assets and tax evasion, and placed under house arrest. If the appeal fails or is not filed, the house arrest order will take effect on February 4, and Runets will be restricted to his home throughout the case.
Founded in 2017, BitRiver is one of Russia’s largest Bitcoin mining companies, operating multiple large data centers in Siberia. According to Bloomberg, by the end of 2024, Runets has accumulated approximately $230 million in net assets through cryptocurrency mining operations.
Since being sanctioned by the U.S. Treasury Department in 2022 due to the Russia-Ukraine conflict, BitRiver has faced multiple challenges, including Japanese SBI Bank ceasing to use its infrastructure, unpaid employee wages, and two lawsuits from Siberian infrastructure suppliers.