BitRiver’s Parent Firm Enters Bankruptcy Monitoring as CEO Faces House Arrest

TheNewsCryptoОпубліковано о 2026-02-02Востаннє оновлено о 2026-02-02

Анотація

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.

Russia’s largest bitcoin mining company, Bitriver’s parent company, named Fox Group of companies LLC, which owns 89% of the BitRiver management company, is in serious trouble. On January 27, 2026, the Sverdlovsk Regional Arbitration Court ordered formal bankruptcy monitoring for the Fox group.

What was the bankruptcy case all about

The bankruptcy petition was filed by the Infrastructure of Siberia and a unit of energy giant En+. The company has paid over 700 million rubles in advance to the Fox group for the mining equipment, which was not delivered. The contract was cancelled, and in April 2025, the regional court ruled in favor of the En+ subsidiary. When the authorities tried to collect the money, they found that there was not enough money, and this led to a bankruptcy filing, and BitRiver’s bank accounts were frozen.

BitRiver is facing large unpaid electricity bills. Courts are currently reviewing several claims of 133 million rubles owed to En+, 640 million rubles owed to the Irkutsk Electric Grid Company, and 168 million rubles already awarded to NTEK. Together, the claims exceed 940 million rubles.

According to the local media reports, the layoffs began in early 2025, and the employee salaries were delayed. Around 80% of senior management had left, and many offices were closed. This makes BitRiver’s business activity sharply decline.

Igor Runets, BitRiver’s founder and CEO, has been charged with tax evasion under Russian law. In January, Moscow’s Zamoskvoretsky District court placed the Runnets under house arrest, and the authorities have not released any detailed information about the charges.

Rise and Downfall

At the time of its peak, the company operated 15 data centers and had more than 533 megawatts of power capacity, with control over 50% of Russia’s bitcoin mining market. Today, the company is facing bankruptcy and legal actions. This shows that the large crypto mining firms can fall when the power cost rises and legal pressure increases.

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Пов'язані питання

QWhat legal action was taken against BitRiver's parent company by the Sverdlovsk Regional Arbitration Court?

AThe Sverdlovsk Regional Arbitration Court ordered formal bankruptcy monitoring for the Fox Group, the parent company of BitRiver.

QWhich companies filed the bankruptcy petition against the Fox Group and what was the primary reason?

AThe bankruptcy petition was filed by the Infrastructure of Siberia and a unit of energy giant En+. The reason was that the Fox Group failed to deliver mining equipment for which it had received over 700 million rubles in advance payments.

QWhat are the total financial claims currently being reviewed by courts against BitRiver?

ACourts are reviewing claims totaling over 940 million rubles, including 133 million rubles owed to En+, 640 million rubles to the Irkutsk Electric Grid Company, and 168 million rubles to NTEK.

QWhat legal charges does BitRiver's founder and CEO, Igor Runets, face?

AIgor Runets has been charged with tax evasion under Russian law and was placed under house arrest by Moscow’s Zamoskvoretsky District court.

QHow did BitRiver's business activity change, and what internal issues were reported by local media?

AAccording to local media, BitRiver's business activity declined sharply with layoffs beginning in early 2025, delayed employee salaries, approximately 80% of senior management leaving, and many offices being closed.

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