Poolin Files for Bankruptcy Amid Crypto Mining Industry Consolidation

Poolin, once the largest Bitcoin mining pool in the world, has filed for Chapter 11 bankruptcy protection in the United States. The company, which was founded in 2017 by former Bitmain executives, had grown to control over 20% of the Bitcoin network's hashrate at its peak.

However, Poolin's fortunes changed dramatically following China's crackdown on cryptocurrency mining in 2021. The company relocated some of its business overseas but continued to struggle with falling Bitcoin prices, rising energy costs, and mounting financial pressure.

In September 2022, Poolin suspended withdrawals, flash trades, and internal transfers on its wallet platform due to liquidity challenges, triggering a wave of miner departures as users lost confidence in the platform.

According to the bankruptcy filing, Poolin now has over $173 million in liabilities. The Chapter 11 process is expected to facilitate the sale of its remaining assets while maximizing recoveries for creditors.