Poolin Files for Bankruptcy Amid $173 Million in Debts and $52M Mining Facility Auction

Poolin, once the largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy in New Jersey. The company's U.S.-based affiliates also joined the filing, and it plans to auction two West Texas mining facilities with a combined opening bid of $52 million.

The majority of Poolin's debts, approximately $163.7 million, come from IOUs issued to customers after withdrawals were frozen in 2022. These IOUs now make up nearly 95% of the liabilities listed in the Chapter 11 filing.

The bankruptcy court will have to determine how these customer IOUs are classified, which could set a precedent for other platforms that blended mining and custody services.