Russia’s Largest Bitcoin Miner BitRiver Nears Collapse Amid Legal Woes

The collapse of BitRiver is being driven by a series of severe legal and financial setbacks. Courts have placed its parent entity, the Fox Group of Companies, under observation as debts and unpaid obligations mount. A pivotal case involves Infrastructure of Siberia, which is seeking more than $9 million after BitRiver failed to deliver mining equipment following a large advance payment. This ruling against the miner is just one facet of a broader financial crisis. Energy suppliers have filed claims totaling hundreds of millions of rubles for unpaid electricity bills, with some losing trading rights due to nonpayment, further constricting BitRiver’s operational lifelines.

Compounding these external pressures are profound internal leadership issues. The company’s founder and CEO, Igor Runets, was placed under house arrest in connection with multiple tax evasion charges. Authorities allege he attempted to conceal company assets to avoid tax payments, claims that Runets and his legal team have denied. This legal entanglement has destabilized corporate governance at a critical juncture, removing key leadership as the company fights for survival.

Concurrent with its financial implosion, BitRiver’s physical operations have been systematically dismantled. Government-imposed operational bans have hit its regional sites hard, with mining centers in Irkutsk and Buryatia remaining offline. Furthermore, a significant 40 MW facility in Ingushetia was shut down by authorities for violating local rules. These shutdowns have catastrophically worsened the company’s financial strain, eliminating revenue streams while fixed costs and debts accumulated.

BitRiver’s struggles have been exacerbated by intense international pressure. US sanctions have severed its access to foreign markets and capital. Critical partner exits, including the withdrawal of Japanese financial giant SBI from Russia, have further limited financial support and crucial supply channels for hardware and technology. This isolation has left the company trapped in a deteriorating domestic environment without external avenues for relief or investment, highlighting how geopolitical factors can directly cripple crypto-mining enterprises.

BitRiver’s downfall presents a stark contrast to the ongoing growth of Russia’s crypto mining industry at large. The company, which generated $129 million in revenue last year and once managed a vast network across 15 centers, is now a case study in failure. Its rapid decline illuminates the fragile balance between regulatory compliance, financial management, and operational execution in a high-stakes industry.

Despite BitRiver’s collapse, the sector it once led continues to expand robustly. Grid-connected Bitcoin mining capacity in Russia rose by 33% in 2025 to reach 4 GW, reflecting strong and sustained domestic demand for industrial mining infrastructure. This growth indicates that while individual companies like BitRiver can falter under the weight of legal woes and mismanagement, Russia remains a major player in the global Bitcoin mining landscape. Analysts suggest that BitRiver’s bankruptcy could signal broader challenges for other large-scale miners operating in regions with restrictive and unpredictable regulatory environments, even as the overall market capacity grows.