Russia’s Largest Bitcoin Miner BitRiver Enters Bankruptcy Proceedings
Founder Igor Runets placed under house arrest as courts scrutinise parent company Fox Group amid mounting legal and financial pressures.
Moscow – BitRiver, the country’s biggest Bitcoin mining operation, has been pushed into formal bankruptcy proceedings after courts placed its parent, the Fox Group of Companies, under observation. The move comes as the firm grapples with a cascade of unpaid obligations, regulatory bans, and criminal investigations targeting its founder and chief executive, Igor Runets.
Legal actions and debt buildup
A key driver of the court‑ordered oversight is a dispute with Siberian energy provider Infrastructure of Siberia. BitRiver had received an advance payment exceeding $9 million for mining hardware that was never delivered. The supplier sued, and the court ruled in its favour, adding the unpaid amount to the company’s growing liabilities.
In parallel, multiple energy firms have filed claims worth hundreds of millions of rubles for unpaid electricity bills. Several of those suppliers have also revoked BitRiver’s right to trade electricity on the wholesale market, further restricting the miner’s ability to keep its rigs running.
Operational shutdowns
Regulatory bans have taken a heavy toll on BitRiver’s regional sites. Mining facilities in Irkutsk and Buryatia remain offline after local authorities ordered their closure. A 40‑MW plant in Ingushetia was also shut down for breaching regional regulations. The loss of these sites has slashed the company’s hash‑rate capacity at a time when the Russian mining sector is expanding.
Leadership under investigation
Adding to the financial strain, Igor Runets was placed under house arrest on charges of tax evasion. Prosecutors allege that Runets attempted to conceal assets belonging to BitRiver to evade tax obligations – claims the CEO has denied. The criminal probe has further eroded confidence among investors and partners.
International sanctions and partner exits
BitRiver’s woes are compounded by external pressures. U.S. sanctions targeting Russian crypto‑mining entities have cut off access to foreign financing and equipment. Japanese firms, most notably SBI Holdings, have withdrawn from the Russian market, removing a source of capital and supply chain support.
Despite these setbacks, BitRiver previously operated over 175,000 mining rigs across 15 sites, generating roughly $129 million in revenue last year. The rapid decline from a robust operation to bankruptcy underscores the fragile equilibrium between regulatory, financial, and geopolitical forces in the Russian mining landscape.
Sector outlook
While BitRiver’s collapse signals heightened risk for large‑scale miners operating under restrictive regimes, the broader Russian crypto‑mining sector continues to grow. Grid‑connected mining capacity rose 33 % in 2025, reaching 4 GW, driven by strong domestic demand for industrial‑grade infrastructure.
Analysts caution that BitRiver’s fate may serve as a bellwether for other Russian miners that depend on state‑owned energy providers and foreign equipment. The interplay of sanctions, local regulatory enforcement, and criminal investigations could shape the strategic choices of remaining players.
Key Takeaways
- Bankruptcy proceedings have been initiated after courts placed Fox Group, BitRiver’s parent, under observation due to mounting debts and unpaid obligations.
- Legal dispute with Infrastructure of Siberia adds a $9 million liability for undelivered mining hardware.
- Operational bans in Irkutsk, Buryatia, and Ingushetia have forced the shutdown of several mining facilities, reducing hash‑rate capacity.
- Founder Igor Runets is under house arrest on tax‑evasion charges, further destabilising the company’s leadership.
- U.S. sanctions and the exit of Japanese partners have limited BitRiver’s access to foreign capital and equipment.
- Despite the collapse, Russian mining capacity expanded 33 % in 2025, reaching 4 GW, indicating continued sector growth.
- BitRiver’s bankruptcy may signal broader regulatory and financial challenges for large‑scale miners in restrictive jurisdictions.
The upcoming court decisions and the outcome of the criminal investigation will likely determine whether BitRiver can restructure or if its assets will be liquidated, setting a precedent for the future of Russia’s crypto‑mining industry.
Source: https://cryptopotato.com/russias-largest-bitcoin-miner-bitriver-enters-bankruptcy-proceedings-report/
