Poolin, Once Bitcoin's Largest Mining Pool, Files for Bankruptcy

Poolin, a major player in the Bitcoin mining industry, has filed for Chapter 11 bankruptcy in New Jersey on July 22, 2026. The Singapore-based company, which previously dominated the market with an estimated 18-20% share of the global hashrate in 2019, now owes approximately $173 million. The bankruptcy filing affects Poolin and its two U.S. affiliates, Lonestar Dream and Lonestar Taproot, with total liabilities believed to be between $100 million and $500 million.

The company faces significant challenges following a liquidity crisis in 2022, which resulted in more than 11,700 customers holding frozen funds totaling about $163.7 million. Users had been reporting withdrawal delays on Poolin's platforms, causing frustration among its client base. Co-founder Kevin Pan acknowledged the company's financial difficulties, claiming at the time that user funds were safe.

Currently, Thor CALAP LLC has made a $52 million bid for two mining sites in West Texas, which represent the bulk of Poolin's remaining assets. This sale is the only significant recovery option available for creditors affected by Poolin's financial troubles.

The downturn in the cryptocurrency market has exacerbated issues for many firms, including Poolin, which had seen its hashrate share decline to effectively zero in recent years. The industry's volatility and past expansion efforts, such as the stalled Texas mining project due to delays in grid connection approvals, have compounded Poolin's challenges.

As the situation evolves, the response from creditors and the outcomes of potential asset sales will be pivotal in shaping the next stages of this bankruptcy case. Stakeholders will be watching closely for updates on the fate of frozen customer funds, as well as the company’s attempts to navigate the Chapter 11 proceedings.