TLDR:
- The court initiated insolvency monitoring for BitRiver after En+ filed for bankruptcy over an unpaid $9.2M debt.
- BitRiver founder Igor Runets was placed under house arrest on tax evasion charges amid the company’s crisis.
- Multiple mining sites shut down due to regional bans and unpaid electricity bills exceeding 940M rubles.
- The company lost 80% of top management by late 2025 as ownership transfer negotiations were underway.
BitRiver, Russia’s largest bitcoin mining operator, has entered insolvency proceedings after a court filing over unpaid debts exceeding $9.2 million.
The company confronts multiple challenges, including frozen assets, outstanding electricity bills, facility shutdowns, and the house arrest of founder Igor Runets on tax evasion charges.
Meanwhile, negotiations for ownership changes are reportedly underway as the crisis deepens.
Court Orders Monitoring Procedure Amid Mounting Debts
The Arbitration Court of the Sverdlovsk Region initiated monitoring procedures for Fox Group of Companies LLC, which controls 98% of Bitriver Management Company.
En+ Infrastructure of Siberia filed the bankruptcy application following a failed equipment supply agreement.
The creditor paid an advance exceeding 700 million rubles but never received the contracted equipment.
After contract termination, the Arbitration Court of the Irkutsk Region ruled in April 2025 in favor of En+ Infrastructure. The court ordered full repayment of the advance plus penalties.
However, enforcement proceedings revealed insufficient assets to satisfy the claims. This prompted the formal bankruptcy petition.
Account freezes resulting from litigation between En+ structures and BitRiver entities have effectively paralyzed business operations.
The company won tenders from En+ in 2023 and 2024 for mining equipment worth approximately 2 billion rubles. Sources indicate problems began after the company paid 400 million rubles in VAT during the first quarter of 2024.
BitRiver operates through a network of roughly 70 legal entities, including Crypto Leader, BitRiver-A, and the Vikhorevka data center. Several sites in the Irkutsk region have ceased operations.
Regulatory mining bans in southern regions forced additional closures. A 40 MW facility in Ingushetia was shut down in February 2025 despite operating illegally.
Power Supply Disputes and Management: Exodus Compound Crisis
Electricity payment defaults triggered conflicts with multiple power suppliers. En+ Sbyt seeks 133 million rubles in penalties for late payments under power supply contracts.
The Irkutsk Electric Grid Company filed claims totaling 640 million rubles. Courts ordered BitRiver to pay 168.7 million rubles to NTEK for electricity debts.
The Faraday Group’s power supply company lost its wholesale market status on August 1, 2025. This prohibition bars participation in electricity trading and capacity transactions.
Regional Rosseti structures have also filed debt collection lawsuits. These accumulated obligations have severely strained the company’s finances.
Staff reductions began in early 2025, followed by salary payment delays. By year-end, approximately 80% of top management departed the company.
Multiple offices closed as equipment and corporate documentation were removed. The exodus reflects deteriorating business conditions and uncertain prospects.
Founder Igor Runets was detained on tax evasion charges and placed under house arrest on January 31. The legal troubles add further complexity to restructuring efforts.
Sources confirm active negotiations regarding ownership transfers and asset redistribution.
BitRiver previously controlled over 50% of Russia’s mining market, making the remaining assets potentially attractive to specialized infrastructure investors.
The post BitRiver Bankruptcy Looms as Russia’s Largest Bitcoin Miner Faces Insolvency Proceedings appeared first on Blockonomi.
Source: https://blockonomi.com/bitriver-bankruptcy-looms-as-russias-largest-bitcoin-miner-faces-insolvency-proceedings/
