GoCheckMyCrypto.comPoolin Files for Chapter 11 Bankruptcy With $173M in Debt
Poolin, once Bitcoin's largest mining pool with 18-20% of global hashrate in 2019, filed for Chapter 11 protection in New Jersey on July 22 with approximately $173 million in debt. A $52 million stalking-horse bid for the company's West Texas operations is the only meaningful recovery offer for creditors, per CoinDesk's reporting.
Poolin, once Bitcoin's largest mining pool with 18-20% of global hashrate in 2019, filed for Chapter 11 protection in New Jersey on July 22 with approximately $173 million in debt, according to CoinDesk's reporting. The company's collapse marks the effective end of a formerly dominant player in mining infrastructure, leaving creditors with minimal recovery prospects as a $52 million stalking-horse bid for West Texas mining assets represents the only serious offer on the table.
The bankruptcy filing came after a liquidity crisis in 2022 that devastated the company's customer base. In September 2022, Poolin Wallet suspended withdrawals entirely, issuing approximately $163.7 million in IOU tokens to around 11,700 customers, per CoinDesk. The freeze occurred as users complained about withdrawal delays on Poolin's Telegram channels in late 2022 while the crypto market downturn intensified. Co-founder Kevin Pan acknowledged in a WeChat post at the time that the company was "facing liquidity problems" while insisting user funds were safe, but those funds were never restored.
Two U.S. affiliates, Lonestar Dream and Lonestar Taproot, also filed for bankruptcy with estimated liabilities between $100 million and $500 million combined, according to CoinDesk.
The company had bet its future on a Texas mining expansion under Pan's leadership. Grid connection approvals for those sites were delayed, stalling the strategy. Now, only Thor CALAP LLC's $52 million bid for the West Texas operations remains as potential recovery for creditors owed roughly $173 million, a shortfall of over $120 million. The bid remains at the stalking-horse stage and would require bankruptcy court approval.
Poolin's market position had already eroded long before the filing. The company's estimated hashrate share has been effectively zero for a number of years, meaning it had lost its competitive foothold in the mining sector well before entering formal insolvency proceedings. CoinDesk reported that Poolin did not respond to requests for comment.
The frozen customer funds from 2022 remain the most visible casualty of the collapse. Those 11,700 users held digital assets on Poolin's platform that never returned to their wallets, representing the largest single impact of the company's distress.
Poolin filed for Chapter 11 bankruptcy on July 22 with $173M in debt; a 2022 liquidity crisis left 11,700 customers holding $163.7M in frozen funds that were never returned.
Watch bankruptcy court filings to confirm whether Thor CALAP's $52M offer is accepted and what recovery rate creditors ultimately receive. The premise that centralized mining pools can maintain solvency through extended market downturns will be tested by whether any meaningful funds flow back to the 11,700 customers still holding IOU tokens from 2022.
And that's the way it is.
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