TechFlow News, February 2, reported that BitRiver, Russia’s largest Bitcoin mining operator, is facing a severe financial crisis. The Sverdlovsk Region Arbitration Court has initiated bankruptcy observation proceedings against Fox Group, BitRiver’s primary holding company. This action follows a bankruptcy petition filed by Siberian Infrastructure, a subsidiary of En+ Group, which alleges that BitRiver failed to fulfill equipment supply contracts and owes approximately 7 million rubles (USD 9.2 million) in debt.
BitRiver is also facing multiple lawsuits from energy companies over unpaid debts, and several of its data centers have been forced to shut down due to regional mining bans and energy supply issues. Igor Runets, the company’s founder and CEO, is under house arrest on suspicion of tax evasion. According to reports, approximately 80% of BitRiver’s senior executives have departed, and the company is currently engaged in negotiations regarding ownership restructuring.
