<p>The legal spotlight has once again fallen on a prominent name in the cryptocurrency sector. This time, it is Russia’s Igor Runets, founder of BitRiver, who has been placed under house arrest as he faces charges of tax evasion.</p>
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  <h2 class="in-brief--title" id="in-brief">In brief</h2>
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   <li>Igor Runets has been placed under house arrest with a limited window for appeal, restricting his freedom while legal proceedings unfold.</li>
   <li>BitRiver faces a debt-recovery claim from a subsidiary of En+ Group for over $9 million related to undelivered mining equipment.</li>
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<h2 id="h-bitriver-faces-runet-s-legal-troubles">BitRiver Faces Runet’s Legal Troubles</h2>
<p>Runets was placed under house arrest on January 31 and is facing three separate charges for allegedly hiding funds to evade taxes. His lawyers have a short timeframe to contest the court’s decision before it comes into effect on Wednesday. If no appeal is submitted or if the challenge fails, he will be confined to his residence for the duration of the legal proceedings. This restriction comes at a critical moment for BitRiver, Russia’s largest crypto <a href="https://www.cointribune.com/en/tag/mines-en/" rel="noopener noreferrer nofollow">mining</a> firm, potentially complicating the company’s management and daily operations.</p>
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<h2 id="h-bitriver-at-risk-of-collapse">BitRiver at Risk of Collapse</h2>
<p>Founded in 2017, BitRiver quickly grew under Runets’ leadership to become a major player in Russia’s industrial-scale mining sector. The company now operates 15 data centers with a total capacity of 533 megawatts, hosting more than 175,000 servers. Its early entry into the market established Runets as a leading figure in the country’s crypto industry.</p>
<p>Despite its success, BitRiver has faced international challenges. In 2022, the US imposed sanctions on the company following Russia’s invasion of Ukraine. According to Bloomberg, the company was viewed as a possible beneficiary of <a href="https://www.bloomberg.com/news/articles/2026-02-02/russia-s-top-crypto-miner-owner-arrested-on-tax-evasion-charges?embedded-checkout=true" rel="noopener noreferrer nofollow">Russia’s 2024 easing of crypto market rules</a>, as the country turned to digital currencies in response to international sanctions.</p>
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<p>Meanwhile, recent reports from Kommersant suggest that <a href="https://www.kommersant.ru/doc/8398061" rel="noopener noreferrer nofollow">BitRiver may be on the verge of bankruptcy</a>. A subsidiary of En+ Group filed a debt-recovery petition with a regional arbitration court, claiming that BitRiver’s parent company, Fox Group, failed to deliver mining equipment that had already been paid for, with damages exceeding $9.2 million.</p>
<p>Sources close to the matter have indicated that BitRiver is also grappling with rising energy debts, internal disputes, and disagreements over equipment. Talks are said to be underway about a possible ownership shift and how BitRiver’s leftover holdings might be managed. Experts suggest that if the company fails, it could speed up mergers and restructuring within Russia’s mining industry and reshape forecasts for energy usage in large-scale operations.</p>
<h2 id="h-broader-sector-challenges">Broader Sector Challenges</h2>
<p>The difficulties at BitRiver reflect wider pressures across Russia’s mining sector. Some facilities have already ceased operations due to local restrictions, and several top executives have left in recent months. The latest Bitcoin halving, combined with rising electricity costs and falling Bitcoin prices, has put further strain on operators, prompting many to explore alternative uses for their infrastructure, such as cloud computing.&nbsp;</p>
<p>Despite these shifts, Russia still accounts for a large portion of the world’s Bitcoin mining power,<a href="https://www.cointribune.com/en/crypto-mining-emerges-as-a-supporting-force-behind-ruble-strength-says-russias-central-bank/" rel="noopener noreferrer nofollow"> ranking second only to the United States</a> in total hashrate, according to a December 31 report from Hashrate Index.</p>

BitRiver Founder Igor Runets Under House Arrest Over Tax Evasion, Company Faces Bankruptcy

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