Russia’s tax authority is now making use of for the chapter of a BitRiver subsidiary chargeable for an enormous and unsuccessful mission believed to have led to the downfall of the troubled mining big.
The chapter proceedings have been initiated within the Republic of Buryatia, which is internet hosting a 100 MW information middle constructed by the corporate, nevertheless it has by no means been powered on amid restrictions on mining and rising debt.
BitRiver firm faces chapter procedures in Buryatia
The Federal Tax Service of Russia, FNS, has filed a chapter petition towards the BitRiver-B entity, a part of the crypto mining group BitRiver, within the Arbitration Court docket of the Republic of Buryatia, media experiences unveiled.
A failed multimillion-dollar funding of the mining behemoth within the area is on the coronary heart of the case. Some say it’s the mistake that led to the corporate’s monetary strains and subsequent issues with the state, together with the current arrest of its CEO.
In accordance with the regional information outlet “Quantity One,” which first noticed the court docket submitting, the mission to assemble the 100 MW information processing middle (DPC) within the Mukhorshibirsky District of the Far Jap territory was first introduced in 2020.
The native subsidiary, included within the rural administrative middle Mukhorshibir with a registered capital of 100,000 rubles, was established to implement the formidable mission, initiated by BitRiver founder and chief government Igor Runets himself.
Development started in 2022, with a deliberate launch within the second half of 2024 that by no means materialized. By February 2024, BitRiver had invested 1.4 billion rubles (over $18 million) within the facility, in line with the enterprise information portal RBC.
The location was supposed to deal with highly effective gear for giant information processing, digital forex mining, and cloud computing, and was imagined to create 100 jobs within the space. Nonetheless, the mission’s realization coincided with increasing restrictions on coin minting on this a part of Siberia.
Within the spring of 2025, the DPC was reportedly able to begin operations however as a facility repurposed to serve the wants of synthetic intelligence (AI) purposes. In January of 2026, Russian authorities imposed a full ban on Bitcoin mining in Buryatia for the following 5 years.
Failed mining mission blamed for BitRiver’s troubles
Sources acquainted with these developments declare the failure of the info middle mission in Buryatia dealt a significant blow to the Russian mining big.
Quoted by RBC, they stated the group may by no means get well and was finally pressured to halt mining operations at different locations as nicely.
That occurred amid mass worker departures and mounting lawsuits filed by contractors and power suppliers towards its entities.
BitRiver was established in 2017 and has since develop into Russia’s largest operator of crypto mining farms and the nation’s main importer of mining {hardware}.
Founder Igor Runets was accused of tax evasion on the finish of January, detained and positioned beneath home arrest. One of many calls for of Russian prosecutors was that his companies pay due salaries.
Russian media experiences within the following weeks detailed a tax-dodging scheme allegedly carried out by mining enterprises within the nation.
Commenting on the BitRiver case, the chairman of the parliamentary Vitality Committee, Nikolai Shulginov, accused Russian miners of hiding crypto-related earnings by formally utilizing the identical gear to offer different companies that want computing units.
Russia legalized the minting of digital cash in 2024, requiring these engaged within the exercise to register with the FNS and pay due taxes. Nonetheless, solely a 3rd of identified mining companies have achieved that up to now, in line with authorities estimates.
BitRiver’s income for that yr exceeded 10 billion rubles (about $130 million), serving to the group prime Russian rankings of mining corporations in 2025, forward of Intelion Information, which lately secured Russia’s first mortgage utilizing cryptocurrency as collateral.
