Poolin, the largest bitcoin mining pool at its peak, has filed for bankruptcy with debts of $173 million, liquidating its assets amid a liquidity crisis.
Poolin, previously the largest bitcoin mining pool in the world, has filed for bankruptcy, revealing debts totaling approximately $173 million.
Once holding an 18-20% share of Bitcoin's global hashrate, the Singapore-based firm is now liquidating its assets.
The company, alongside its U.S. subsidiaries Lonestar Dream and Lonestar Taproot, initiated Chapter 11 proceedings in New Jersey on July 22, with liabilities estimated between $100 million and $500 million.
At its peak in 2019, Poolin dominated the bitcoin mining sector, but a liquidity crisis in 2022 led to significant operational issues, including the freezing of $163.7 million in assets for 11,700 users.
In a bid to recover some of its losses, Thor CALAP LLC has proposed a $52 million acquisition of Poolin’s mining operations in West Texas, which represent a substantial portion of its remaining assets.
During the crypto market downturn, users began to express frustration over delayed withdrawals, prompting co-founder Kevin Pan to acknowledge the firm’s liquidity challenges while assuring customers that their funds were safe. However, by September 2022, Poolin Wallet had completely suspended withdrawals, issuing IOU tokens to users as a temporary measure.
Despite hopes for expansion into Texas, delays in securing necessary approvals hampered Poolin's recovery efforts. The firm has not made any public statements regarding its bankruptcy filings.
