Poolin Files Bankruptcy, Owes $163M to Frozen Wallet Users
The Singapore-based crypto mining pool Poolin has filed for Chapter 11 bankruptcy, revealing a massive asset shortfall that leaves thousands of retail creditors facing severe losses on frozen digital assets.
Poolin Technology filed for Chapter 11 bankruptcy on July 22 in a New Jersey court, marking the final unraveling of a business that once controlled nearly a fifth of Bitcoin's global hashrate. The Singapore-based company, along with its U.S. affiliates Lonestar Dream Inc. and Lonestar Taproot LLC, listed over $100 million in obligations against less than $10 million in assets.
The largest single liability in the case stems from the company's failed expansion into crypto lending. Approximately 11,700 users are owed $163.7 million in unpaid IOU tokens, according to a court declaration from Chief Restructuring Officer Michael DuFrayne. These debts originated in September 2022, when Poolin halted withdrawals amid the broader crypto market crash and issued placeholder tokens instead of returning actual Bitcoin.
Poolin's only meaningful remaining assets are two West Texas mining sites, which were permanently shut down on July 10. Thor CALAP LLC has submitted a $52 million stalking-horse bid to acquire the facilities, establishing the minimum price for a court-supervised auction. This potential sale price is restricted to the physical infrastructure and leaves a massive shortfall for the users owed funds.
The Texas mining expansion, managed through Lonestar Dream, proved to be a heavy financial burden on the parent company. The operations accumulated roughly $45.9 million in losses since opening, compounded by an additional $8.8 million loss from selling off mining equipment at discounted prices between fiscal 2023 and 2025.
Founded in Beijing in 2017 by Bitmain veterans Zhibiao "Kevin" Pan, Fa Zhu, and Tianzhao Li, Poolin initially thrived as a mining pool before its balance sheet was destroyed by its deposit-taking side business. Recovery for the 11,700 IOU holders now depends entirely on whether the upcoming Texas auction generates enough premium to close the gap. For investors and market professionals, the case illustrates the lingering fallout from the 2022 crypto crash and the structural fragility of mining platforms that blur the line between infrastructure operations and unregulated banking.
