Russia’s largest bitcoin miner BitRiver faces bankruptcy after court action over $9M in unpaid debts, account freezes, and halted operations. Russia’s largest bitcoinRussia’s largest bitcoin miner BitRiver faces bankruptcy after court action over $9M in unpaid debts, account freezes, and halted operations. Russia’s largest bitcoin

Russia’s Bitcoin Mining Giant BitRiver Faces Bankruptcy After Court Action

3 min read

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

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.

The post Russia’s Bitcoin Mining Giant BitRiver Faces Bankruptcy After Court Action appeared first on Live Bitcoin News.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

OFAC Designates Two Iranian Finance Facilitators For Crypto Shadow Banking

OFAC Designates Two Iranian Finance Facilitators For Crypto Shadow Banking

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Iranian financial facilitators for coordinating over $100 million worth of cryptocurrency in oil sales for the Iranian government, a September 16 press release shows. OFAC Sanctions Iranian Nationals According to the Tuesday press release, Iranian nationals Alireza Derakhshan and Arash Estaki Alivand “used a network of front companies in multiple foreign jurisdictions” to transfer the digital assets. OFAC alleges that Alivand and Derakhshan’s transfers also involved the sale of Iranian oil that benefited Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL). IRGC-QF and MODAFL then used the proceeds to support regional proxy terrorist organizations and strengthen their advanced weapons systems, including ballistic missiles. U.S. officials say the move targets shadow banking in the region, where illicit financial actors use overseas money laundering and digital assets to evade sanctions. “Iranian entities rely on shadow banking networks to evade sanctions and move millions through the international financial system,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “Under President Trump’s leadership, we will continue to disrupt these key financial streams that fund Iran’s weapons programs and malign activities in the Middle East and beyond,” he continued. Dozens Designated In Shadow Banking Scandal Both Alivand and Derakhshan have been designated “for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of the IRGC-QF.” In addition to Alivand and Derakhshan, OFAC has sanctioned more than a dozen Hong Kong and United Arab Emirates-based entities and individuals tied to the network. According to the press release, the sanctioned entities may face civil or criminal penalties imposed as a result
Share
CryptoNews2025/09/18 11:18
SOL Price Prediction: Oversold Conditions Target $142 Recovery by March 2026

SOL Price Prediction: Oversold Conditions Target $142 Recovery by March 2026

Solana trades at $103.22 with RSI at 29.98 signaling oversold conditions. Technical analysis suggests potential bounce to $142 resistance within 6-8 weeks. (Read
Share
BlockChain News2026/02/03 17:58
XRP Holding $1.64 Strong, Is a $2 Breakout Next?

XRP Holding $1.64 Strong, Is a $2 Breakout Next?

The post XRP Holding $1.64 Strong, Is a $2 Breakout Next? appeared on BitcoinEthereumNews.com.  Key Insights: XRP is holding above $1.64, a support level linked
Share
BitcoinEthereumNews2026/02/03 17:47