Poolin Bitcoin Mining Pool Files Chapter 11 Bankruptcy With $173M Debt
In brief
- Poolin filed Chapter 11 bankruptcy on July 22 with approximately $173 million in debts
- Bitcoin mining pool controlled 18-20% of global hashrate at its 2019 peak
- Poolin Wallet suspended withdrawals in September 2022 and issued $163.7M in IOU tokens
- Texas mining expansion stalled after grid connection approvals were delayed
From peak to collapse
Poolin's estimated hashrate share has been effectively zero for a number of years, but the company's troubles began much earlier. Users were already complaining about withdrawal delays on Poolin's Telegram channels in late 2022. By September of that year, things came to a head: Poolin Wallet suspended withdrawals entirely and the company issued approximately $163.7 million in IOU tokens to around 11,700 customers.
Co-founder Kevin Pan had tried to manage the narrative. He acknowledged in a WeChat post that the company was facing liquidity problems while insisting user funds were safe. It wasn't enough. The Texas mining expansion Pan had bet on to rebuild the business stalled after grid connection approvals were delayed, leaving the company with no clear path to recovery.
What's left to sell
The bankruptcy filing lists estimated liabilities between $100 million and $500 million. Poolin filed for bankruptcy alongside its two U.S. affiliates Lonestar Dream and Lonestar Taproot, which operated much of the company's U.S. infrastructure. A $52 million bid for two mining sites in West Texas is currently on the table from Thor CALAP LLC, representing one of the few remaining assets creditors hope to recover. The bankruptcy process will determine whether that sale—or others—can generate enough value to satisfy even a fraction of what Poolin owes.
Frequently asked questions
What was Poolin at its peak?
Poolin was a Bitcoin mining pool that controlled roughly 18-20% of the network's global hashrate in 2019, making it one of the largest mining operations in the world. The company pooled computing power from miners worldwide to validate Bitcoin transactions collectively.
When did Poolin's problems start?
Users began complaining about withdrawal delays in late 2022. By September 2022, Poolin Wallet suspended withdrawals entirely and issued $163.7 million in IOU tokens to approximately 11,700 customers. Co-founder Kevin Pan acknowledged the company was facing liquidity problems.
How much does Poolin owe?
Poolin filed for Chapter 11 bankruptcy with debts of around $173 million. The bankruptcy filing lists estimated liabilities between $100 million and $500 million, with assets including two West Texas mining sites that have received a $52 million bid from Thor CALAP LLC.
