Russia's largest Bitcoin (BTC) mining firm entered bankruptcy proceedings after years of financial deterioration and mounting creditor claims.
A regional court initiated insolvency supervision against Fox Group, which controls 98% of BitRiver, on Jan. 27.
CEO Igor Runets was placed under house arrest on tax evasion charges days earlier, according to Russian court documents.
What Happened
The Sverdlovsk Regional Arbitration Court opened bankruptcy observation following a claim from Infrastructure of Siberia, an En+ Group subsidiary.
BitRiver failed to deliver equipment despite receiving over $9.2 million in advance payments under contracts from 2023-2024.
Courts awarded the debt to En+ in April 2025, but enforcement proceedings found no recoverable assets.
The company faces additional creditor lawsuits totaling more than $12 million, primarily from electricity suppliers including Rosseti Siberia and Irkutsk Electric Grid Company.
BitRiver's accounts were frozen as part of the dispute, effectively paralyzing operations.
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Why It Matters
BitRiver once controlled over 50% of Russia's bitcoin mining market with 533 megawatts of capacity across 15 data centers.
The company generated $129 million in revenue last year while operating more than 175,000 mining rigs.
U.S. Treasury sanctioned BitRiver in April 2022, marking the first time Washington targeted a cryptocurrency mining company.
The sanctions restricted access to Western markets and imported equipment, cutting off key revenue channels.
Internal dysfunction accelerated in late 2025 with mass layoffs, executive departures, and office closures.
Court filings show BitRiver failed to produce basic legal documents for multiple lawsuits, with notices returned unclaimed after seven days.
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