Bitcoin mining company Poolin has filed for bankruptcy along with its two US subsidiaries Lonestar Dream and Lonestar Taproot with estimated liabilities between $100 million-$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 about $173 million in debt,
A $52 million bid for two West Texas mining sites is currently on the table from Thor CALAP LLC. The locations represent the largest part of the company’s assets.
Poolin was one of the largest mining pools in bitcoin at its peak, meaning more bitcoin was mined through Poolin than through any other single pool on earth. Glassnode data shows that its share of the global hash rate reached around 18-20% in 2019.
Users were already complaining about withdrawal delays on Poolin’s Telegram channels at the end of 2022, a period plagued by crypto companies facing liquidity crunch as this year’s market decline came to a head. Co-founder Kevin Pan acknowledged in a WeChat post that the company was “facing liquidity issues” while insisting that user funds were safe.
