Russian Bitcoin mining company BitRiver has been placed under bankruptcy observation by the court due to a debt dispute

According to the Russian newspaper "Kommersant," the large Russian Bitcoin mining company BitRiver is facing a serious crisis and may be heading towards bankruptcy. Its parent company has had bankruptcy observation procedures initiated by an arbitration court, with the main creditor, the En+ Group's "Siberian Infrastructure" company, demanding the repayment of over $9.2 million in debt.

The report points out that BitRiver has fallen into a legal dispute with En+ due to failing to deliver equipment after not receiving advance payments for it. At the same time, the company is also facing multiple lawsuits from power companies seeking to recover unpaid electricity bills, totaling hundreds of millions of rubles. Due to its inability to pay electricity bills and local bans, BitRiver has ceased operations at several data centers in Irkutsk, Buryatia, and other locations. It is estimated that the company previously held over 50% of the mining market in Russia. The company is currently negotiating changes in ownership and the transfer of remaining assets.

According to previous news from ChainCatcher, the CEO of the Russian Bitcoin mining company BitRiver was arrested on suspicion of tax evasion.