Bitcoin mining company Poolin has filed for bankruptcy alongside 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 approximately $173 million.
A $52 million offer for two mining sites in West Texas is currently on the table from Thor CALAP LLC. The sites represent the majority of the company’s assets.
Poolin was one of the largest bitcoin mining pools at its peak, meaning more bitcoins were mined through Poolin than through any other pool on earth. Data from Glassnode shows that its share of the global hashrate reached around 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 shortages as that year’s market downturn reached its peak. Co-founder Kevin Pan acknowledged in a WeChat post that the company was “facing liquidity issues,” while insisting that user funds were safe.
