BitRiver CEO Arrested; En+ Pushes for Bankruptcy as Russian Mining Giant Stumbles
Russia’s largest miner faces liquidation as CEO Igor Runets is charged with tax evasion and En+ Group demands $9.2M in unpaid debts.
Igor Runets detained for tax evasion as energy supplier En+ triggers insolvency proceedings against the sanctioned miner.
Russian authorities have placed Igor Runets, CEO of the country’s largest Bitcoin mining operator BitRiver, under house arrest following a detention order from Moscow’s Zamoskvoretsky District Court. The arrest coincides with a bankruptcy filing by En+ Group subsidiary “Infrastructure of Siberia,” which is demanding insolvency procedures over unpaid debts. The double blow sent tremors through the regional mining sector, though Bitcoin (BTC) global price action remained absorbed by broader macro flows, trading at $78,321 (-4.2%).
The Zamoskvoretsky Court charged Runets with three counts of concealing assets to evade taxes under the Russian Criminal Code.
The Insolvency Squeeze
The legal offensive is spearheaded by En+ Group, a major hydropower supplier and former partner of BitRiver. According to filings cited by local media, En+ is seeking to recoup over $9.2 million (approx. 900 million rubles) in debt. The conflict stems from a dissolved joint venture, “Bit+,” where En+ alleges BitRiver failed to pay for electricity and breached equipment supply contracts.
The Arbitration Court has already initiated “supervision procedures,” the first stage of bankruptcy under Russian law, against BitRiver’s parent entity, Fox Group. This move allows an interim manager to assess the company’s solvency, effectively stripping Runets of total financial control.
Sanctions to Shutdown
BitRiver’s collapse has been slow-motion. The firm, which operates 15 data centers with a massive 533 MW capacity, was the first major miner sanctioned by the U.S. OFAC in 2022. Cut off from Western capital and hardware, the operator pivoted to domestic energy partnerships.
That pivot has now failed. With En+ turning hostile and the Federal Tax Service freezing accounts, BitRiver faces a liquidity crisis. Operations at its Bratsk and Ust-Ilimsk facilities are at risk of immediate suspension, potentially stranding over 175,000 mining rigs owned by hosting clients.
Market Impact
While BitRiver’s hosting capacity is significant (approx. 2-3% of global hashrate potential), much of this hardware has likely been underutilized due to the prolonged dispute. The market’s muted reaction suggests the “Russian risk” was already priced in.
