Crypto miner Poolin files Chapter 11, sets $52M asset sale floor
The formerly dominant crypto mining pool Poolin has filed for bankruptcy protection to auction its Texas infrastructure for a minimum of $52 million, marking the final unwinding of a firm crippled by leveraged lending and the 2022 market crash.
Poolin Technology and two U.S. affiliates filed for Chapter 11 bankruptcy in New Jersey after shutting down their Texas bitcoin mining operations on July 10. Rather than attempting to reorganize, the Singapore-based company is pursuing a court-supervised sale of its remaining American infrastructure.
The debtors have established a $52 million stalking-horse bid with Thor CALAP LLC to anchor the auction. The proposal allocates $15 million for the Pyote site and $37 million for the Tarbush location, encompassing real estate, power rights, and mining equipment. The properties can be sold separately if it maximizes creditor returns, and the floor price remains subject to higher offers.
The filing exposes a massive gap between Poolin's remaining U.S. assets and its obligations. The companies estimate holding just $1 million to $10 million in assets against liabilities of $100 million to $500 million, with an estimated 10,001 to 25,000 creditors. Chief Restructuring Officer Michael DuFrayne pegged total prepetition obligations at approximately $173.1 million.
The bulk of that debt stems from the 2022 suspension of customer withdrawals from Poolin Wallet. Roughly $163.7 million in unsecured IOUs are owed to about 11,700 retail users who held frozen balances exceeding $100. Recovery for these unsecured creditors will depend entirely on the proceeds generated above the $52 million floor bid.
Poolin's bankruptcy illustrates the structural risks of centralized crypto yield products and leveraged lending. Once the world's largest mining pool by September 2019, the firm expanded into consumer finance by allowing users to borrow the stablecoin USDT against crypto collateral and earn interest on deposits.
When China banned mining in 2021, Poolin pivoted to the U.S. but maintained heavy leverage, borrowing roughly $213 million against cryptocurrency collateral then valued at $355.8 million. The 2022 market crash triggered collateral liquidations, leaving the firm insolvent. The U.S. entities have recorded cumulative losses of approximately $45.9 million since their formation.
The proposed liquidation follows a three-month marketing effort that contacted more than 335 potential buyers, resulting in 28 non-disclosure agreements and seven letters of intent. Founder Zhibiao "Kevin" Pan owns 100% of the equity in the parent company, which has not operated normally since 2022 and currently holds just $1.2 million in a New Jersey bank account.
