BitRiver, recognized as Russia”s largest Bitcoin miner, is teetering on the brink of bankruptcy due to escalating financial and legal challenges. The company has had its parent organization, Fox Group of Companies, placed under judicial scrutiny as debts and unresolved obligations continue to accumulate.
One significant legal dispute involves Infrastructure of Siberia, which is seeking over $9 million after BitRiver allegedly failed to deliver mining equipment. This situation arose from a substantial advance payment made for hardware that was never supplied, leading to a lawsuit that ruled in favor of the energy firm.
Operational bans have severely impacted BitRiver”s mining operations. Facilities located in Irkutsk and Buryatia have been rendered inactive due to government restrictions. Furthermore, a 40 MW facility in Ingushetia was forcibly shut down due to breaches of local regulations. These closures have exacerbated the financial strain on the company, which is already grappling with a wave of claims from energy suppliers totaling hundreds of millions of rubles for unpaid electricity bills. Some suppliers have even lost their trading rights due to nonpayment, further crippling BitRiver”s operational capabilities.
Adding to the turmoil, company founder and CEO Igor Runets has been placed under house arrest amid multiple charges of tax evasion. Authorities allege that Runets attempted to hide company assets to evade tax obligations, a claim that he and his legal representatives have firmly denied.
Despite the challenges facing BitRiver, the broader crypto mining sector in Russia continues to display growth. The nation”s grid-connected mining capacity reportedly increased by 33% in 2025, reaching 4 GW, driven by robust domestic demand for industrial mining infrastructure. Analysts suggest that BitRiver”s potential bankruptcy could reflect larger, systemic issues facing significant miners in restrictive regions. Nevertheless, the ongoing expansion of the sector indicates that Russia remains a key player in the global Bitcoin mining landscape, even as individual firms like BitRiver encounter severe difficulties.
