More Russian Bitcoin miners risk exit as BitRiver crisis deepens

Russian Bitcoin mining firms sit on the verge of a precipice, an expert says, following the dramatic downfall of BitRiver, the country’s biggest industrial miner.

This week, the mining giant was plunged into crisis, with reports that its rigs have been shut down, its staff reportedly unpaid for three months, and its founder, Igor Runets, placed under house arrest as part of a tax evasion probe.

BitRiver’s crisis “is a sign that major mining players are finding it increasingly difficult to operate without clear rules and sustainable corporate models,” Mikhail Smirnov, director of communications at the crypto exchange EXMO, told Russian newspaper Vedomosti.

“The outflow of participants, especially weak ones,” could intensify in the near future, he said.

BitRiver operates more than 175,000 crypto mining rigs and provides other services to businesses. In 2025, the firm posted revenues of over $133 million and used 533 megawatts of electricity across 15 data centres.

The news is a body blow to Russia’s Bitcoin mining industry, which has drawn investment from corporate backers in recent months. In 2025, Russian miners produced approximately 26,000 Bitcoin, worth around $2 billion, bringing their total capacity to 11 GW.

Tax evasion scheme

Runets, who founded BitRiver in Irkutsk, Siberia, in 2017, is considered the godfather of Russian Bitcoin mining. The region has since become the de facto capital of the country’s Bitcoin mining industry.

Prosecutors suspect Runets of operating a tax evasion scheme that allowed several companies to reduce their tax payments by claiming they had made payments for computing services and data centre infrastructure, the Russian media outlet RBC reported.

Investigators reportedly believe BitRiver clients transferred money to the mining company, claiming they were paying for ASIC Bitcoin mining rigs.

In reality, these companies did not receive any mining equipment and instead used the fictional purchases to claim non-existent expenses on tax declarations.

Vedomosti’s sources said employees at a wide “group of companies under the BitRiver brand umbrella” have not been paid since November.

“Management and top executives, including [...] Runets, are not responding to communications,” an unnamed source close to the company’s employees told Vedomosti. “Many have submitted their resignations, and the rest are not responding to phone calls or emails.”

Information vacuum

The source said many BitRiver offices have been closed, and that “unknown individuals” have removed “equipment and documentation, including accounting records,” which were “sent to an unknown location.”

Russian crypto experts say regulatory pressure may have ultimately taken an unbearable toll on BitRiver.

Despite progress in market regulation, the mining industry in Russia “remains in a state of legal uncertainty, which increases risks for large businesses,” Smirnov said.

Sanctions, litigation, and questions about corporate governance have also increased the burden on the company, the expert added.

Runets and BitRiver were both placed under US sanctions in 2022.

Tim Alper is a News Correspondent at DL News. Got a tip? Email him at tdalper@dlnews.com.