BitRiver CEO arrested in Moscow on tax evasion charges

News hotspots in Moscow

Igor Runets, CEO and founder of BitRiver – Russia's largest and most prominent industrial-scale Bitcoin mining company – has been arrested in Moscow on charges of large-scale tax evasion . The arrest was confirmed by the Russian Investigative Committee (SK) and reported by Kommersant, RBC, and international news agencies such as Reuters and Bloomberg on February 2, 2026.

Runets is accused of evading taxes exceeding 4.5 billion euros (approximately $47-50 million at current exchange rates) between 2021 and 2024 through the use of shell companies , inflated expenses , and false declarations of imported mining equipment . The case is being handled under Article 199 of the Russian Criminal Code (large-scale tax evasion by an organization) , which carries a potential sentence of up to six years in prison and substantial fines.

BitRiver controls one of the world's largest Bitcoin mining facilities at a single location ( 300–350 MW capacity in Bratsk, Irkutsk Oblast ), powered by inexpensive Siberian hydroelectric power . At its peak, it accounts for 1% to 2% of the total global Bitcoin hash rate.

Tax compliance is a key focus.

According to reports, the arrest is related to allegations of tax evasion, although the full details of the charges have not yet been released. In Russia, tax enforcement is often used as a powerful regulatory lever —particularly in sectors with complex, cross-border, or difficult-to-audit revenue streams.

Revenue from cryptocurrency mining, valued in digital assets and often channeled through international structures, poses precisely this type of challenge to traditional tax authorities.

Russia's stance on cryptocurrencies has evolved unevenly. While the country has explored frameworks to legalize and regulate mining—particularly as a way to monetize surplus energy—it has also tightened oversight amid concerns about capital outflows, the risk of sanctions, and tax evasion.

Impact on the cryptocurrency mining industry

For mining companies operating in Russia, this incident increases legal and operational risks. Even companies that consider themselves compliant with the law may face scrutiny of their past records, revenue classifications, or cross-border cash flows.

This could accelerate the ongoing trend of mining companies diversifying geographically, restructuring business entities, or seeking jurisdictions with clearer and more predictable tax regimes.

Although the incident did not directly affect the Bitcoin network, it could impact hashrate allocation over time if major operators reassess their level of exposure to Russia. In particular, institutional clients may become more cautious about relying on mining infrastructure in jurisdictions with unstable law enforcement practices.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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