BitRiver, the largest Bitcoin mining firm in Russia, is on the brink of bankruptcy due to increasing legal and financial challenges. Its parent company, Fox Group of Companies, is under judicial observation due to accumulating debts and unpaid commitments.

Legal Disputes and Financial Strain

One of the notable legal disputes involves the Infrastructure of Siberia company, which is pursuing over $9 million due to BitRiver’s failure to deliver mining equipment, stemming from a significant advance payment made for hardware that was never provided. This lawsuit led to a ruling in favor of the energy firm.

Operational bans have adversely affected BitRiver’s facilities, particularly in Irkutsk and Buryatia, which remain non-operational because of government restrictions. Additionally, a facility in Ingushetia was shut down due to regulatory violations. These operational interruptions exacerbate the company’s financial woes amid numerous claims from energy suppliers over unpaid electricity bills, amounting to hundreds of millions of rubles.

Moreover, the founder and CEO, Igor Runets, is currently under house arrest linked to several tax evasion accusations. He is accused of attempting to hide company assets to evade taxation, a claim firmly denied by him and his legal advisors.

Challenges Amidst Industry Growth

BitRiver is also under pressure from international sanctions and the withdrawal of partners, which have curtailed its access to foreign markets. Previously, the company oversaw over 175,000 rigs across 15 centers, generating $129 million in revenue last year. Its rapid downturn emphasizes the precarious balance amidst regulatory, financial, and operational pressures affecting Russia’s mining sector.

Despite BitRiver’s issues, the broader landscape for crypto mining in Russia appears to be expanding, with grid-connected mining capacity reported to have risen 33% in 2025, driven by robust domestic demand for industrial mining infrastructure. Analysts have expressed concerns that BitRiver’s bankruptcy might imply larger obstacles for significant mining enterprises navigating strict regulations, yet the sector’s ongoing growth indicates Russia remains a pivotal player in global Bitcoin mining.