Poolin's Bitcoin Mining Empire Crashes Amid $173 Million in Liabilities

Poolin, one of the largest Bitcoin mining pools globally, has filed for Chapter 11 bankruptcy in the United States. The filing includes Poolin's parent company based in Singapore and its U.S. subsidiaries Lonestar Dream Inc. and Lonestar Taproot LLC.

The companies are seeking a court-supervised liquidation of their remaining assets, specifically their mining infrastructure in Texas, rather than reorganizing under Chapter 11.

Prior to bankruptcy, Poolin's total pre-bankruptcy obligations were estimated at approximately $173.1 million, with almost $163.7 million owed to unsecured creditors, mainly Poolin Wallet users who were unable to access their assets following a 2022 withdrawal freeze.

The company's financial woes stem from its wallet business, which allowed users to deposit cryptocurrency and borrow USDT against collateral, leading to enormous losses when Antalpha Technologies liquidated the collateral in late 2022 due to falling prices.