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- A Russian court has started bankruptcy observation against Fox Group, the main owner of BitRiver Management.
- Unpaid equipment contracts and energy debts triggered the legal collapse.
- BitRiver assets may still attract investors despite shutdowns and bans.
According to the report, the Sverdlovsk Regional Arbitration Court has launched observation proceedings against Fox Group of Companies LLC. The company owns 98 percent of BitRiver Management Company.
The ruling was registered in the case file on the 27th of January. The bankruptcy was filed by the En+ Group’s subsidiary, Infrastructure of Siberia. The total sum of the debt is more than 9.2 million dollars or 700 million Russian rubles, including penalties. The debt is ranked in the third category of creditors’ claims.
The dispute began with the conclusion of the contract for the supply of equipment. The Infrastructure of Siberia concluded the contract with the Fox Group, paying more than 700 million Russian rubles in advance. The supplier did not fulfill the obligations under the contract to supply the equipment.
The buyer terminated the contract. It also filed a claim for the refund of the funds paid in advance, as well as penalties for late payment. In April 2025, the Arbitration Court of the Irkutsk Region satisfied the claim in full.
Company Accounts Frozen During Cases
The bailiffs were not able to identify assets that would be sufficient for the judgment. The creditor decided to turn to bankruptcy law. This process initiated the opening of the procedures for observing the debtor. The lawyer noted that disputes related to this case put pressure on the situation. The accounts of the companies of BitRiver were frozen during the litigation process. This process usually halts the activities of the business.
BitRiver works through a large group of companies. This includes Crypto Leader, BitRiver-A, BitRiver Rus, and the Vikhorevka data center, among dozens of other companies. The total number of companies was 15 at the peak of their activities. The total capacity of the companies was more than 533 megawatts.
Total number of equipment units was more than 175,000 units of equipment. The activities of the companies in the Irkutsk region have been halted. The mining bans were put in place in the southern part of the region. The construction of a 100-megawatt facility was not launched in Buryatia. The mining ban is scheduled for 2026.
In February 2025, law enforcement shut down the 40-megawatt facility in Ingushetia, where mining activities were still conducted despite the ban. Partnerships with Gazprom Neft were terminated as well. Sources have noted that the companies of BitRiver won the tenders of En+ in 2023 and 2024.
Tax Payments Added Financial Pressure
This value amounted to approximately 2 billion rubles. The offers were made at much lower rates than the market. There were also requirements for security and taxes. The company reportedly paid approximately 400 million rubles in value-added tax in early 2024. Financial difficulties soon ensued.
These were also issues regarding the energy sector, which further added to the crisis. There were allegations of unpaid electricity bills. There were also penalties, which were being reviewed by the courts. This amounted to hundreds of millions of rubles. Energy traders associated with the company sought debt recovery.
One of the energy traders associated with the company lost trading rights in the wholesale market in August 2025. Layoffs started in early 2025. There were also delays in salaries. By the end of the year, all the senior managers had left the company. All the offices were closed, and all the equipment and documents were removed.
A Moscow court also placed the founder and chief executive, Igor Runets, under house arrest for tax evasion. Despite the company’s downfall, there are still talks regarding the change in ownership. This is because the company, BitRiver, once controlled more than half of the mining market. There are still specialized investors who are interested in the company. This is due to the fact that the data center market in Russia is still growing at a fast rate.
Also Read: Bitcoin Open Interest Plummets as Binance Dominates – What’s Behind the Shift?
