Russian crypto mining giant BitRiver faces potential bankruptcy as a regional arbitration court opens insolvency supervision against its controlling shareholder. The proceedings follow a $9.2 million equipment dispute, and the company’s founder has reportedly been placed under house arrest on tax evasion charges, compounding difficulties for the U.S.-sanctioned firm.
BitRiver, Russia’s largest cryptocurrency mining firm, is facing potential bankruptcy after a regional arbitration court opened insolvency supervision proceedings against its controlling shareholder. Igor Runets, the company’s founder and CEO, was reportedly placed under house arrest on tax evasion charges following a Moscow district court ruling.
The Arbitration Court of Sverdlovsk Oblast opened bankruptcy observation against Group of Companies Fox, which owns 98% of BitRiver. The move followed a claim filed by Infrastructure of Siberia, an En+ Group subsidiary, as reported in Russian media. The subsidiary had paid BitRiver over $9.2 million for equipment that was never delivered after the contract was terminated.
As part of the dispute, accounts linked to BitRiver companies were reportedly frozen, which could paralyze the business. In a separate case found through court filings, a company named Rosseti Siberia is seeking to recover about $60,000 in unpaid electricity bills from Management Company BitRiver.
By late 2025, other BitRiver entities showed signs of deterioration, failing to meet basic court requirements in lawsuits. These operational dysfunctions are consistent with local reports of mass executive departures and office closures at the company. BitRiver has been under U.S. sanctions since April 2022, when the Treasury Department’s Office of Foreign Assets Control sanctioned it and ten Russia-based subsidiaries.
The U.S. Treasury stated at the time that BitRiver helped Russia “monetize its natural resources” through large-scale mining operations. The federal agency said the business model remained vulnerable to sanctions due to its dependence on imported equipment and fiat payment channels.
