BitRiver CEO detained for tax evasion amid bankruptcy woes

BitRiver founder Igor Runets was detained for tax evasion and placed under house arrest. The company faces financial difficulties, including a $9.2 million debt and bankruptcy proceedings from energy supplier En+.

Igor Runets, founder of Russian Bitcoin mining firm BitRiver, has been detained on multiple tax evasion charges. According to Moscow's Zamoskvoretsky Court, Runets was detained on January 30 and formally charged a day later with three counts of concealing assets to evade taxes. He is currently under house arrest, with his legal team given a brief window to appeal before the order becomes final on February 4. If the appeal is unsuccessful or not filed, Runets will remain under house arrest throughout the investigation and trial. BitRiver, founded in 2017, operates several large data centers in Siberia and has become one of Russia's leading Bitcoin mining companies. As of late 2024, Runets' net worth was estimated at $230 million. Recently, BitRiver has faced significant financial challenges, including delayed salary payments and a bankruptcy petition from energy supplier En+ over a $9.2 million debt. These issues have prompted urgent negotiations among investors and creditors to stabilize the company's operations.