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Ripple and Stellar were pulled into a fresh round of social-media speculation this weekend after newly surfaced emails from the Epstein document release appeared to reference the two projects in a 2014 investor dispute. Former Ripple CTO David Schwartz pushed back publicly, saying he knows of no direct links between Epstein and either network, and framed the episode as another example of tribal politics bleeding into crypto.

Schwartz Reacts After Epstein Docs Mention Ripple, Stellar

The spark came from a screenshot circulating on X that shows an email chain in which Austin Hill (co-founder of Blockstream) complained to a group of high-profile recipients, including Epstein, about investors allocating capital across competing projects. According to Schwartz, the document “is an email from Austin Hill to Jeffrey Epstein explaining that Hill felt that support for Ripple or Stellar made someone an enemy/opponent,” adding that Hill likely shared similar views “to many other people.”

As the image spread, some posts characterized the mere inclusion of Ripple and Stellar in the email as evidence of deeper involvement. Schwartz responded with a message that tried to separate inflammatory framing from what the document actually shows.

“I don’t know of any connections between Jeffrey Epstein and Ripple, XRP, or Stellar. [I don’t know of] any evidence anyone at Ripple or Stellar ever met with Epstein or anyone closely connected to him,” he wrote. “There are some indirect ties between Epstein and people connected to Bitcoin in various ways, but that’s probably true of most very wealthy people.”

Schwartz’s first post on the thread captured the mood of the day, both suspicion and a reluctance to feed it. “I hate to be a conspiracy theorist, but I wouldn’t be at all surprised if this is just the tip of a giant iceberg,” he wrote while linking to the DOJ-hosted file. He later argued the more corrosive issue was the “enemy/opponent” mindset, writing that “we really are all in this together and this kind of attitude hurts everyone in the space.”

In the underlying 2014 email described in the source material, Hill is portrayed as objecting to backers funding multiple “horses” at once, treating support for Ripple or Stellar as hostile to the bitcoin-centric “ecosystem” he was building at Blockstream. Reports summarizing the chain say it was sent to Joichi Ito, Epstein, and Reid Hoffman, and included language that investors in both camps were “backing two horses in the same race.”

The resurfaced email also revived an older fault line in how early projects structured themselves. In response to a user asking about Ripple versus Stellar’s nonprofit posture, Schwartz said the idea was debated early on and that he opposed it.

“We discussed it in the early days. I was strongly against it because it seemed dishonest and borderline illegal to have a non-profit whose success was so tied to the gains of private parties,” he wrote. “It felt, at least to me, like Walmart creating a non-profit to help educate people about how much money they could save by shopping at Walmart.”

At press time, XRP traded at $1.64.

On-chain data shows the Bitcoin spot price is now below the cost basis of nearly two-thirds of inflows into exchange-traded funds (ETFs).

62% Of US Bitcoin Spot ETF Inflows Now In Loss

In a new X post, on-chain analyst Checkmate has shared a chart discussing the latest situation related to the Bitcoin spot ETFs. Spot ETFs are investment vehicles that allow investors to gain indirect exposure to an underlying asset. Such funds are available for Bitcoin and other digital assets in many parts of the world, but the ones of interest here are those based in the United States. First approved back in January 2024, US BTC spot ETFs have been in operation for more than two years now, and in that time, they have witnessed significant growth.

Lately, however, the trend related to these funds has been one of net outflows as the wider cryptocurrency sector has gone through a bearish shift. Outflows in the last two weeks, in particular, have been quite intense.

Below is the chart posted by the analyst that shows the trend in the weekly netflow related to the Bitcoin spot ETFs, among other metrics:

From the graph, it’s visible that the Bitcoin spot ETFs have witnessed net outflow spikes of $1.33 billion and $1.49 billion during the last two weeks, representing the third and second largest outflow sprees in the history of these funds. Alongside the negative netflows, Bitcoin has plunged under the $80,000 level. The asset is now trading under the average cost basis of the spot ETFs (marked in the chart using the dashed line), meaning that the majority of capital stored in these funds is now being held at a loss.

In the netflow graph, Checkmate has highlighted which of the weekly inflow spikes are part of this loss of supply. It would appear that the last green inflows are now sitting all the way back in late 2024, with all spikes since then underwater. “If you assume a cost basis of inflows on the day they occurred, 62% of ETF inflows are now underwater,” noted the analyst.

So far in the history of BTC spot ETFs, holders haven’t been underwater to a significant degree as BTC has generally gone up since their launch. During a phase in mid-2024, the cryptocurrency did dip below the cost basis of these traders, but even then, it never went too far below the line.

Given this, the latest breach of the Bitcoin spot ETF break-even level could end up being the first time that these investors would have to deal with the pain of a bear phase. It now remains to be seen how the netflow related to these investment vehicles will develop in the coming weeks.

BTC Price

Bitcoin fell to $75,000 on Sunday, but the asset has rebounded a bit to start the new week as its price is now floating around $77,800.

Igor Runets, the entrepreneur behind one of Russia’s biggest Bitcoin farms, was taken into custody Friday as tax investigators moved in on his company.

The move shocked many in the mining world because BitRiver runs huge data halls in Siberia and has been a visible player since the early 2020s.

Runets Held As Tax Case Advances

Based on reports, Igor Runets was detained on January 30, 2026, and charged the next day with several counts tied to hiding income and assets from tax authorities.

A Moscow court later set conditions that would place him under house arrest starting February 4 unless his legal team overturns that order. The limits on his freedom are now expected to complicate how BitRiver manages day-to-day decisions.

BitRiver Under Strain

BitRiver contracts out space, power, and cooling to big mining clients. Those deals matter because mining runs on tight margins and steady power.

Reports note the firm has already dealt with sanctions from the US Treasury back in 2022 and lost some international partners after that.

In the past, partners in Asia pulled back. That exit, combined with legal pressure now, could make it harder for BitRiver to keep operations humming where margins are thin.

How This Could Ripple Through Mining

The arrest puts new legal risk squarely on a company that hosts a lot of third-party miners. If leadership is distracted or restricted, boards and clients may rethink contracts.

Industry Reaction And Financial Signals

Crypto markets tend to react to big headlines. But mining is also local and practical: refrigeration, power lines, and worker shifts.

BitRiver’s founder was estimated to hold roughly $230 million in wealth tied to the business as of 2024. That figure helps explain why the case drew attention.

Analysts are watching whether creditors, partners, or insurers change their stance. Some lenders may tighten terms. Suppliers might demand new assurances.

Legal Next Steps For Runets And BitRiver

Reports say Runets’ lawyers will file appeals and seek to limit restrictions. The court’s steps in late January and early February will set the tone for how much control he keeps.

Investigators are focusing on alleged tax concealment and transfers designed to mask assets. If the case widens, executives and board members elsewhere in the sector could see increased scrutiny.

A Moment Of Uncertainty For A Key Player

BitRiver has been one of the more visible mining hosts in Russia. Its future now depends on legal rulings, partner confidence, and how the company steadies operations while facing new constraints.

For miners that used BitRiver’s sites, the immediate concern is continuity—keeping rigs online and power contracts intact.

For the market, the story is a reminder that mining ventures don’t operate in a legal vacuum and that regulatory pressure can change business math fast.

Featured image from Unsplash, chart from TradingView

Russia’s biggest crypto mining company is under renewed scrutiny after authorities detained BitRiver founder and CEO Igor Runets on multiple tax evasion charges, deepening the legal and financial pressure on a firm already constrained by sanctions and operational setbacks.

Related Reading: With Bitcoin Below $80K, ARK Reframes The Narrative Around Gold

The case, which is being handled by a Moscow court, has drawn attention to the risks facing large-scale crypto miners operating at the intersection of energy, regulation, and geopolitics.

According to reports from Russian outlets RBK and Kommersant, Runets was detained late last week and formally charged with three counts of alleged tax evasion.

Court filings indicate that the Zamoskvoretsky Court of Moscow ordered him placed under house arrest, a measure that restricts his movement while investigators proceed. His legal team has a limited window to appeal the ruling before it becomes fully enforceable.

Court Case Adds Pressure On Bitriver

Founded in 2017, BitRiver grew rapidly into Russia’s leading Bitcoin mining operator by building large data centers across Siberia.

The company used the region’s cold climate and relatively low electricity costs to support its mining operations and to provide infrastructure services to corporate clients. At its peak, BitRiver operated thousands of mining rigs across multiple sites and accounted for a significant share of Russia’s legal crypto-mining capacity.

Runets’ detention comes amid mounting challenges for BitRiver. The company was sanctioned by the US Treasury Department in mid-2022 following Russia’s invasion of Ukraine, limiting its access to Western partners and financial systems.

In 2023, Japanese financial group SBI exited its mining arrangement with BitRiver following its withdrawal from Russia, dealing a blow to the firm’s international business.

Financial Strain And Legal Disputes

Reports suggest that BitRiver began cutting costs and scaling back parts of its operations toward the end of 2024, leading to salary payment delays affecting employees.

The pressure continued into early 2025, when regional electricity provider Infrastructure of Siberia filed two lawsuits, alleging that it had paid BitRiver for equipment that was never delivered.

Despite these issues, Russia’s industrial mining sector continued to generate significant revenue in 2024, with BitRiver remaining the market leader. Bloomberg estimated Runets’ net worth at around $230 million in late 2024, largely tied to his role in the crypto mining industry.

Wider Implications for The Crypto Sector

The case against Runets highlights the growing legal and regulatory risks facing crypto executives, both in Russia and abroad. While authorities investigate the alleged tax violations, BitRiver must also manage ongoing litigation, strained partnerships, and scrutiny linked to sanctions.

Related Reading: With Bitcoin Below $80K, ARK Reframes The Narrative Around Gold

As the market awaits the verdict, the case’s outcome could shape how Russian crypto mining firms approach compliance, financing, and governance in an increasingly restrictive environment.

Cover image from ChatGPT, BTCUSD chart from Tradingview

A viral post on the social media platform X recently claimed that Satoshi Nakamoto, the pseudonymous creator of Bitcoin, just sold 10,000 BTC. An attached screenshot purported to show on-chain data supporting the claim, and the rumor quickly garnered attention on the social media platform. 

The ramifications of such a sale are huge because Nakamoto’s stash is untouched going back to the earliest days of Bitcoin mining. However, a closer look into blockchain records tells a very different story.

Investigating The Rumor Of Satoshi Nakamoto’s Bitcoin Sale

According to a post on X by a crypto account with the username Discover, Satoshi Nakamoto recently moved 10,000 BTC from its long-dormant wallet. The report suggests that over $760 million worth of Bitcoin had been sold by its creator, a move that could cause further harm to its price action, which is already fragile and trading with prevailing bearish momentum.

The image shared with the rumor appears to be taken from Arkham Intelligence, a popular on-chain analytics platform. The screenshot, which is shown below, highlights the outflow of 10,000 BTC into account ‘bc1qcj,’ with the last transfer being 12 years ago.

However, the records in this screenshot do not align with the real ledger of Bitcoin transactions. Closer inspection of on-chain transactions on Arkham Intelligence shows there is no evidence of a single transfer of 10,000 BTC attributed to at least one known address linked to Nakamoto. 

The real data shows no outflow from Nakamoto’s wallets for over 12 years. Instead, small fractions of Bitcoin, almost negligible in the context of Satoshi’s holdings, have been flowing in. These tiny movements are likely dust or micro-transactions occurring as part of normal blockchain activity, with the last being an inflow of 0.0000329 six days ago.

Why The Rumor?

The identity and actions of Satoshi Nakamoto have always been a source of speculation among crypto investors. Nakamoto is the largest holder of Bitcoin, believed to have mined somewhere around 1 million Bitcoin in the early years of the network, but he has been quiet since April 2011. 

Therefore, any suggestion that those coins have suddenly started moving is enough to grab headlines and cause reactions. That context likely contributed to why this post attracted enough views quickly, even though the data was inaccurate. Data from Arkham Intelligence shows Nakamoto’s BTC wallets currently hold 1.096 million BTC, which are worth $84.3 billion.

Notably, Bitcoin’s price itself has been trending through significant volatility. Over the past few days, Bitcoin has dipped to levels near this cycle’s lows, trading around the mid-$70,000 range, close to the lowest levels since April 2025. At the time of writing, Bitcoin is trading at $76,872, having recently reached an intraday low of $74,591, according to data from CoinGecko.