BitRiver, Russia’s crypto-mining company, is under financial pressure after a regional court opened proceedings against its main shareholder.
The Arbitration Court of Sverdlovsk Oblast started a supervision process on January 27 for the Group of Companies Fox, which owns nearly all of BitRiver’s capital.
This stage allows the court to assess the company’s financial condition before deciding whether to proceed with a full bankruptcy.
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At the same time, Igor Runets, BitRiver’s founder and CEO, is under house arrest. The order was issued by a Moscow district court as part of an ongoing tax evasion investigation.
According to a report by Kommersant, a Russian business outlet, the case stems from a lawsuit filed by Infrastructure of Siberia, a unit of En+ Group. The company reportedly paid BitRiver around $9.2 million (about 700 million rubles) in advance for equipment that was never delivered.
When the contract was canceled, recovery efforts through enforcement failed, leading to the court claim.
Following the dispute, bank accounts tied to BitRiver and its related entities were reportedly frozen. These restrictions have added further strain to an already struggling business already dealing with international sanctions.
Meanwhile, a former Google software engineer was found guilty of stealing confidential artificial intelligence (AI) data and attempting to use it for projects linked to China. How did the case unfold? Read the full story.
