BitRiver, Russia’s largest industrial Bitcoin miner, has entered a high-stakes legal and financial crisis after a Russian arbitration court started bankruptcy supervision against its main holding structure. The case centers on a disputed equipment deal and a court-recognized debt claim of about $9.2 million.
Meanwhile, Russian authorities have also moved against BitRiver’s founder and chief executive, Igor Runets, who now faces criminal allegations tied to tax payments. The parallel proceedings have intensified uncertainty around the company’s operations and ownership.
The Arbitration Court of the Sverdlovsk region opened ‘observation’ proceedings on January 27 against Fox Group of Companies LLC, which owns 98% of BitRiver’s management company, according to multiple reports citing court records.
Observation functions as an early-stage bankruptcy process. It typically involves monitoring finances and assessing whether restructuring remains possible under creditor oversight.
Furthermore, reports said the petition came from Infrastructure of Siberia, an En+ Group subsidiary, after enforcement actions failed to locate enough assets at Fox Group to satisfy the claim.
The infrastructure of Siberia told courts it paid an advance of more than 700 million rubles under an equipment supply contract with Fox Group. The firm said BitRiver did not deliver the mining hardware, which led to contract termination and a refund demand.
In April 2025, an arbitration court in the Irkutsk region ruled in favor of Infrastructure of Siberia, according to reporting that cited the case history. Still, enforcement efforts later failed to recover sufficient assets, which triggered the bankruptcy filing.
However, Runets has disputed the non-delivery claim. In comments reported by ForkLog, he said the group delivered the equipment and that Fox Group has appealed the decision.
Operational pressure has also grown from regional restrictions on crypto mining. Facilities in the Irkutsk region have stopped operating in part due to a mining ban in the south of the area, while a planned 100-megawatt (MW) data center in Buryatia never entered service.
In addition, reports said authorities shut down a 40 MW site in Ingushetia in February 2025, after it continued operating despite an earlier ban. Reports also linked broader site closures to contract terminations, including projects tied to Gazprom Neft.
Consequently, the balance-sheet strain has widened into disputes with power suppliers. Court materials and reporting referenced claims and penalties tied to unpaid electricity obligations, while other proceedings have sought recovery for overdue bills from BitRiver-linked entities.
The personal legal risk for Runets has also escalated. According to reports, the Zamoskvoretsky Court in Moscow placed him under house arrest on January 31. The prosecutors allegedly accused him of concealing funds to evade tax-related obligations, while authorities have not disclosed full case details.
BitRiver has operated at a large scale in recent years. Industry estimates said the group ran 15 data centers with more than 533 MW of capacity and hosted over 175,000 mining devices at its peak.
The company has also faced sustained international pressure since 2022, when the US Department of the Treasury said its Office of Foreign Assets Control sanctioned BitRiver and related entities. The Treasury described BitRiver as a large-scale operator that relied on imported equipment and fiat payment channels.
Looking ahead, the bankruptcy observation process will determine whether Fox Group can reach a settlement with creditors or proceed deeper into insolvency procedures. Meanwhile, separate criminal proceedings against Runets may continue to shape governance and financing options for BitRiver-linked companies.
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