Poolin Crypto Mining Pool Files for Chapter 11 Bankruptcy with $500M Debt
Crypto mining pool Poolin has filed for Chapter 11 bankruptcy protection in New Jersey, citing estimated liabilities between $100 million and $500 million against assets worth just $1 million to $10 million.
The company's troubles date back to 2022 when it froze withdrawals from PoolinWallet due to liquidity problems and issued six IOU tokens representing users' balances. This was a precursor to the current crisis, which is exacerbated by a decline in mining profitability.
The bankruptcy filing allows Poolin to reorganize its debts while working towards liquidating assets rather than continuing operations as a going concern. A court-approved bidding process is underway, with an auction possible on September 10 and a sale hearing set for September 18. The stalking horse bidder will be designated by the company's management.