Founder of Russian Bitcoin Giant BitRiver Detained Over Tax Evasion Allegations

Founder of Russian Bitcoin Giant BitRiver Detained Over Tax Evasion Allegations

According to court documents from Moscow's Zamoskvoretsky District Court, Igor Runets, founder and CEO of the prominent Russian Bitcoin mining firm BitRiver, was detained on January 30. He faced three charges of tax evasion through asset concealment and was placed under house arrest. If no appeal is filed or if it fails, the decision will take effect on February 4, restricting Runets to his home throughout the legal proceedings.

Bloomberg reported that by the end of 2024, Runets had amassed a net worth of around $230 million through his cryptocurrency mining ventures. However, BitRiver has faced a series of setbacks in recent years. Since being sanctioned by the U.S. Treasury in 2022 due to the Russia-Ukraine conflict, the company's operational landscape has deteriorated significantly.

• Japan's SBI Bank ended its infrastructure support for BitRiver.
• Reports emerged of delayed salary payments to employees, triggering internal dissatisfaction.
• Two infrastructure providers in Siberia launched lawsuits, adding to the firm's financial strain.

This incident not only hampers BitRiver's growth but also reignites concerns about compliance within the cryptocurrency sector. As global regulations tighten, how crypto enterprises operate within legal frameworks will become a critical challenge.