BitRiver parent enters bankruptcy monitoring as CEO placed under house arrest: report
BitRiver's parent company, Fox Group, entered bankruptcy monitoring following a debt dispute, while CEO Igor Runets was placed under house arrest for tax evasion.Summary
Fox Group of Companies LLC, the parent entity owning 98% of Russia's largest bitcoin miner BitRiver, has been placed under formal bankruptcy observation by a Sverdlovsk Regional Arbitration Court following a petition from En+'s subsidiary, Infrastructure of Siberia, over an unfulfilled equipment supply contract.
BitRiver is also facing severe financial strain from mounting utility liabilities, with energy suppliers claiming over 940 million rubles in unpaid electricity bills. This financial distress has led to operational collapse, including layoffs, delayed salaries, and the departure of 80% of top management.
Separately, BitRiver's founder and CEO, Igor Runets, was charged with tax evasion under Article 199.2 of Russia's criminal code and subsequently placed under house arrest by a Moscow court. Negotiations are reportedly underway for a change in ownership and the transfer of BitRiver's remaining assets.
(Source：The Block)