BitRiver Faces Bankruptcy as CEO Runets Held Under House Arrest

Russia's largest Bitcoin mining company, BitRiver, is teetering on the edge of bankruptcy as courts initiate insolvency proceedings against its parent firm amid escalating debts and operational shutdowns, while founder and CEO Igor Runets faces house arrest on tax evasion charges.

The Sverdlovsk Regional Arbitration Court ordered observation procedures for Fox Group of Companies LLC on January 27, following a bankruptcy petition from energy firm Infrastructure of Siberia over an unpaid debt exceeding 9 million. The claim arose from a contract where Infrastructure of Siberia advanced more than 700 million rubles for mining equipment that BitRiver failed to deliver. An April 2025 ruling by the Irkutsk Region Arbitration Court upheld the creditor's demand for a full refund plus penalties, but enforcement efforts uncovered insufficient assets to cover the amount. Runets has contested the decision, stating that the equipment was delivered and that his company is appealing. He added that recent shutdowns caused significant losses to group entities, which they plan to recover through legal action against the energy provider.

Compounding the financial strain, BitRiver grapples with...