Bitcoin mining company Poolin has filed for bankruptcy along with its two US subsidiaries, Lonestar Dream and Lonestar Taproot, with liabilities estimated between $100 million and $500 million, TheEnergyMag reported on Friday.
The Singapore-based company, which once dominated the industry, filed for Chapter 11 protection in New Jersey on July 22 with debts of about $173 million.
Thor CALAP LLC is currently bidding $52 million for two mining sites in West Texas. The sites represent the majority of the company’s assets.
Poolin was one of the largest bitcoin mining pools at its peak, meaning that more bitcoins were mined through Poolin than through any other mining pool in the world. Glassnode data shows that its share of the global hashrate reached approximately 18-20% in 2019.
Users were already complaining about withdrawal delays on Poolin’s Telegram channels in late 2022, a period plagued by crypto companies facing liquidity constraints as that year’s market crash came to a head. Co-founder Kevin Pan acknowledged in a WeChat post that the company was “facing liquidity issues” and insisted that user funds were safe.
