Russia’s Largest Bitcoin Miner BitRiver Starts Bankruptcy Proceedings: Report

The company’s founder and CEO, Igor Runets, was placed under house arrest on multiple tax evasion charges.

BitRiver, Russia’s largest Bitcoin miner, is on the brink of collapse amid mounting financial and legal troubles. Courts have placed the parent company, Fox Group of Companies, under observation as debts and unpaid obligations pile up.

One of the disputes giving rise to the lawsuit concerns Siberia’s infrastructure. The company is to search more than $9 million after BitRiver failed to deliver mining equipment. The case stems from a large upfront payment for hardware that was never delivered. This led to a lawsuit and a ruling in favor of the energy company.

Operational bans and energy disputes

Operational bans have hit BitRiver’s regional sites hard. Mining centers in Irkutsk and Buryatia remain offline due to government restrictions. In addition, a 40 MW plant in Ingushetia was closed by authorities for violating local rules.

These closures have exacerbated the company’s financial pressures, in addition to increasing disputes over unpaid electricity bills. Energy suppliers have filed claims worth a total of hundreds of millions of rubles. Some also lost trading privileges after non-payment, further limiting BitRiver’s ability to operate.

Leadership issues have added to the pressure. The company’s founder and CEO, Igor Runets, was placed under house arrest on multiple tax evasion charges. Authorities allege he tried to hide company assets to avoid taxes, a claim Runets and his legal team have denied.

BitRiver’s Struggle Amid Industry Growth

BitRiver has also struggled under international pressure. US sanctions and exits from partner countries have hampered access to foreign markets. Japanese companies, including SBI, also withdrew from Russia, limiting financial support and supply channels.

The company once managed more than 175,000 installations across 15 centers and generated $129 million in revenue last year. The rapid decline underlines the fragile balance between regulatory, financial and operational pressures in the Russian mining industry.

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Despite BitRiver’s setbacks, Russia’s crypto mining sector continues to grow. Grid-connected mining capacity increased by 33% to 4 GW in 2025, reflecting strong domestic demand for industrial mining infrastructure.

Analysts say BitRiver’s bankruptcy could point to broader challenges for large-scale miners operating in restrictive regions. Still, the industry’s continued growth shows that Russia remains a major player in global Bitcoin mining, even as individual companies falter.