BitRiver, Russia’s largest Bitcoin mining firm, is under bankruptcy supervision after its parent company defaulted on debts. The Sverdlovsk court initiated monitoring for Fox Group of Companies LLC, which owns 98% of BitRiver, following a failed equipment deal with En+ Group.

The collapse stems from a canceled $9.1 million hardware purchase and mounting electricity debts exceeding $12 million. BitRiver’s operations have stalled with frozen accounts, mass layoffs, and shuttered offices. Over 80% of top management resigned by year-end, and mining sites were stripped of hardware.

Founder and CEO Igor Runets is under house arrest on tax evasion charges. His detention adds to investor unease as Russia tightens scrutiny on crypto firms. Market watchers expect further consolidation in the sector amid post-halving pressures and energy cost hikes.