Russia’s largest bitcoin miner BitRiver faces bankruptcy after court action over $9M in unpaid debts, account freezes, and halted operations.
Russia’s largest bitcoin mining operator, BitRiver, is facing bankruptcy after a court initiated insolvency proceedings over unpaid debts.
The development has drawn attention within the digital asset sector, as BitRiver operates large-scale mining facilities and works closely with regional power providers.
The court action follows months of financial strain, operational disruptions, and growing creditor pressure.
Court Action and Debt Claims
A Russian arbitration court opened insolvency proceedings after creditors filed claims exceeding $9 million.
According to Kommersant, the debts relate to unpaid service fees, power supply contracts, and data center operations.
Creditors argued that repeated payment delays left them with limited recovery options. The court reviewed the claims and approved the start of formal bankruptcy procedures.
As part of the ruling, the court imposed restrictions on several BitRiver bank accounts. These measures were taken to preserve remaining assets during the legal process.
A temporary administrator was appointed to review the company’s financial position.
The administrator is responsible for assessing liabilities, assets, and possible restructuring options under court supervision.
Operational Strain and Facility Disruptions
BitRiver’s operations have been affected by mounting power-related debts.
Several energy suppliers reportedly limited or suspended electricity delivery to mining facilities due to unpaid balances. These actions reduced mining output across multiple sites.
Some data centers have fully halted operations, while others continue at reduced capacity.
Industry sources cited by Kommersant said these interruptions affected both hosting clients and in-house mining activity.
The company is also facing asset freezes linked to the insolvency case. These restrictions have limited BitRiver’s ability to pay contractors and resume normal operations.
Ownership Talks and Management Changes
Negotiations are underway regarding a possible change of ownership. According to court filings, discussions focus on debt settlement and continued operation of key facilities.
No final agreement has been announced. Several senior managers have reportedly left the company during the insolvency process.
The departures occurred amid financial stress and ongoing legal reviews.
BitRiver founder Igor Runets has been placed under house arrest on tax-related charges, according to local media.
Authorities have not released further details, and the investigation remains active.
Related Reading: Russia Bans Ukrainian Crypto Exchange WhiteBit Over Funding Allegations
Bitcoin Holdings and Legal Oversight
BitRiver operates one of the largest bitcoin mining infrastructures in Russia. The company expanded during periods of low energy costs and favorable climate conditions for mining efficiency.
There is no official confirmation that BitRiver plans to sell bitcoin holdings. Court documents focus on debt recovery, asset valuation, and creditor claims.
Any sale of digital assets would require approval from the court-appointed administrator. The insolvency process continues under strict legal oversight as proceedings move forward.
Source: https://www.livebitcoinnews.com/russias-bitcoin-mining-giant-bitriver-faces-bankruptcy-after-court-action/
