Russia's biggest bitcoin mining firm's founder arrested for tax evasion while his company faces bankruptcy

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Russia's biggest bitcoin mining firm's founder arrested for tax evasion while his company faces bankruptcy An En+ subsidiary has filed an insolvency claim against the crypto mining firm, adding to pressure from energy debts, regulatory curbs and internal turmoil. By Olivier Acuna | Edited by Aoyon Ashraf Updated Feb 2, 2026, 9:07 p.m. Published Feb 2, 2026, 9:06 p.m. Make us preferred on Google Igor Runets, founder of one of Russia's largest crypto mining operations is under house arrest for not paying his taxes. (Mark Agnor/Shutterstock/Modified by CoinDesk) What to know : Igor Runets, founder of Russia’s largest crypto miner BitRiver, has been placed under house arrest on multiple tax evasion charges, with his lawyers facing a brief window to appeal before the order is fully enforced. BitRiver, already sanctioned by the United States in 2022 over Russia’s invasion of Ukraine, is now confronting a potential bankruptcy after an En+ Group subsidiary filed a $9.2 million insolvency claim tied to allegedly undelivered mining equipment. The company, which once operated 15 data centers and controlled more than half of Russia’s industrial crypto-mining capacity, has reportedly shut several facilities, accumulated energy debts and lost senior managers, raising the prospect of major consolidation in the country’s mining sector. Igor Runets, who founded Russia’s largest crypto mining firm BitRiver, is under house arrest on tax evasion charges, Bloomberg reported on Monday . Runets was detained on Friday and is facing three charges for allegedly concealing assets to evade taxes. Runets’ legal team now has a small window to appeal the house arrest before it becomes fully enforceable on Wednesday. If an appeal is unsuccessful or not filed, Runets will remain home‑bound for the entirety of the case, according to RBC. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . Runets, 39, is a top pioneer among Russia’s crypto mining industry, Bloomberg reported on Monday. He founded BitRiver in 2017 and later expanded it to 15 data centers with more than 175,000 servers and a capacity of 533 megawatts. The U.S. sanctioned the BitRiver in 2022 following Russia’s invasion of Ukraine. For comparison, MARA Holdings, one of the biggest U.S. bitcoin miners, has 1.8 gigawatts of mining capacity. The Stanford University MBA graduate began building a crypto mining data center in Siberia in 2017. Soon after, BitRiver drew clients worldwide, including the U.S. and China. And as bitcoin peaked in price, surging almost 650% to more than $62,000 by October 2021, according to CoinDesk data , mining for the cryptocurrency became increasingly profitable at the time. Also, on Monday, l ocal news agency Kommersant reported that BitRiver is facing potential bankruptcy after an En+ Group subsidiary filed an insolvency claim in a regional arbitration court. The dispute centers on allegations that BitRiver’s parent, Fox Group, failed to deliver prepaid mining equipment, with the claimant seeking more than $9.2 million. Court-ordered account freezes tied to the case could disrupt operations at a company that once controlled more than half of Russia’s industrial crypto-mining capacity. The legal challenge comes as BitRiver is already under strain from rising energy debts, equipment disputes and internal turmoil, Kommersant added, citing sources familiar with the situation. Several data centers have reportedly already been shut down amid regional mining bans, while a large share of senior management has departed over the past year. Analysts told the newspaper that a BitRiver collapse would likely accelerate consolidation in Russia’s mining sector and reshape expectations around electricity demand from the industry. Miners facing financial trouble has been an widespread phenomenon after the recent halving event, which cut rewards in half, squeezing profit margins. With rising power costs and falling bitcoin prices, most miners have pivoted to offer their data centers to host computing machines for AI and cloud computing firms, diversifying their businesses away from mining. Russia Bitriver Crypto-Mining