Former Bitcoin Mining Giant Poolin Files Chapter 11

Poolin Technology, once the world’s largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy protection as it moves to sell its remaining mining operations in Texas.

The Singapore-based company and two U.S. affiliates filed in the U.S. Bankruptcy Court for the District of New Jersey. Court documents put Poolin’s pre-bankruptcy obligations at about $173.1 million, including roughly $163.7 million in unsecured IOUs issued to Poolin Wallet customers after withdrawals were suspended in 2022.

About 11,700 retail users held frozen claims worth more than $100 each when the suspension began. Poolin’s petition estimates 10,001 to 25,000 creditors, assets of $1 million to $10 million and liabilities between $100 million and $500 million.

Poolin plans to sell substantially all of its remaining U.S. mining assets rather than reorganize the former mining-pool business. Thor CALAP LLC has submitted a $52 million stalking-horse offer, setting the floor for a court-supervised auction.

Founded in China in 2017, Poolin once controlled nearly one-fifth of Bitcoin’s global hashrate. Its expansion into crypto-backed lending and interest-bearing deposits ran into trouble during the 2022 market crash, when falling collateral values triggered liquidations and left the company unable to meet customer withdrawals.

Any sale remains subject to higher bids and bankruptcy-court approval. The outcome will determine how much Poolin’s customers and other unsecured creditors may recover after administrative costs and higher-priority claims.