BitRiver’s crisis is affecting up to 50% of Russia’s mining sector, with $9.2 million in debt and its CEO under arrest.
The bitcoin mining giant BitRiver, which controls more than half of the Russian market, is on the brink of bankruptcy following a court ruling that initiated supervisory proceedings against its parent company.
On January 27, the Sverdlovsk Regional Arbitration Court ordered the start of monitoring proceedings against Fox Group of Companies LLC, which owns 98% of BitRiver Management Company, after a $9.2 million compensation claim filed by Infrastructure of Siberia, a subsidiary of En+.
Just last year, the company generated more than $129 million in revenue, managing 533 MW of power across 15 data centers with over 175,000 mining machines.
The contract that triggered the crisis
Infrastructure of Siberia filed for bankruptcy after BitRiver failed to deliver mining equipment despite having received an advance payment of more than 700 million rubles ($9.15 million). The company had signed a supply contract with Fox Group, but the hardware was never delivered, leading to the contract’s termination.
Infrastructure of Siberia then launched legal action seeking reimbursement of the advance payment plus penalties for late payment. In April 2025, the Irkutsk Regional Arbitration Court fully upheld the claim.
However, BitRiver’s owner and CEO, Igor Runets, disputes the accusations. According to Forklog, Runets claims the equipment was delivered and that Fox Group is appealing the court’s decision.
“They are operating normally today, but the December outages caused significant losses to several group companies, including ‘BitRiver Rus’ and ‘Stroyservice Plus,’ which we intend to recover from En+ through legal proceedings,” Runets said.
Despite the CEO’s statements, enforcement proceedings against Fox Group have failed to identify sufficient assets to cover the court-ordered amounts, pushing the case toward bankruptcy proceedings.
Mining bans and energy disputes
BitRiver’s troubles extend well beyond its debt to En+. Facilities in the Irkutsk region have shut down following the introduction of a mining ban in the southern part of the region. A 100 MW data center in Buryatia was never brought online, and a year-round mining ban is set to take effect in the region starting in 2026. In February 2025, law enforcement authorities shut down a 40 MW site in Ingushetia that was operating despite a ban in place since early 2025.
The company is also facing growing disputes with energy providers over unpaid electricity bills. As of August 1, 2025, Faraday Group’s energy sales company lost its right to participate in electricity and capacity trading, as well as its status as a wholesale market participant.
Courts are reviewing claims seeking 133 million rubles ($1.74 million) in penalties from En+ Sbyt and 640 million rubles ($8.37 million) from the Irkutsk Electric Grid Company for delayed payments under energy supply contracts.
Amid the ongoing crisis, BitRiver founder and CEO Igor Runets was recently arrested by Russian authorities and charged with multiple counts of tax evasion. Runets faces three charges related to the alleged concealment of assets to evade taxes. The court ordered Runets to be placed under house arrest, with his legal team given until February 4 to appeal the decision.
