BitRiver’s Parent Firm Enters Bankruptcy Monitoring as CEO Faces House Arrest
Russia's largest bitcoin mining firm, BitRiver, is facing severe financial and legal turmoil. The parent company, Fox Group LLC, was placed under court-ordered bankruptcy monitoring in January 2026. The bankruptcy was triggered by a petition from energy giant En+ and its subsidiary, who paid over 700 million rubles for undelivered mining equipment. Subsequent investigations revealed insufficient funds for repayment, leading to frozen bank accounts.
BitRiver is burdened by massive debts, including 133 million rubles to En+, 640 million to Irkutsk Electric Grid, and 168 million to NTEK, totaling over 940 million rubles. The company has faced layoffs, salary delays, and a mass exodus of senior management since early 2025, causing a sharp decline in operations. Founder and CEO Igor Runets is under house arrest on tax evasion charges.
Once controlling 50% of Russia's bitcoin mining market with 15 data centers, BitRiver's downfall highlights the vulnerabilities of large crypto miners to rising power costs and legal pressures.
TheNewsCrypto02/02 15:28
