Poolin Technology Pte. Ltd., the Singapore-based operator of one of the world's largest Bitcoin mining pools, filed for Chapter 11 bankruptcy on July 22 in the U.S. Bankruptcy Court for the District of New Jersey. The filing lists over $100 million in prepetition obligations against less than $10 million in assets, with roughly 11,700 individual users collectively owed $163.7 million.

Poolin was founded in Beijing in 2017 by Zhibiao "Kevin" Pan, Fa Zhu, and Tianzhao Li — all veterans of mining hardware manufacturer Bitmain. The company grew rapidly, eventually controlling nearly a fifth of Bitcoin's global hashrate at its peak. Beyond mining pool services, Poolin expanded into crypto lending and interest-bearing accounts through a product called Poolin Wallet.

The cracks appeared in September 2022, when Poolin froze all withdrawals from Poolin Wallet and Pool Account. The company cited "liquidity issues" triggered by a wave of withdrawal demand during that year's broader crypto market collapse. Rather than returning customer funds, Poolin issued IOU tokens as placeholders for real Bitcoin. Those debts were never repaid.

On July 10, Poolin's Texas mining and hosting operations — run through its subsidiary Lonestar Dream — shut down entirely. The company said it does not intend to resume those operations. Eleven days later, Poolin filed for Chapter 11 protection, covering the parent company alongside affiliates Lonestar Dream Inc. and Lonestar Taproot LLC.

The bankruptcy of a former top-three mining pool exposes the risks of crypto lending products layered onto core mining infrastructure services. Poolin's fate mirrors other firms that froze withdrawals during the 2022 credit crisis and never regained solvency. For the 11,700 users still holding Poolin-issued IOUs, the Chapter 11 filing is the clearest signal yet that their funds will likely never be recovered in full.

The case also raises questions about concentration risk in Bitcoin mining. A pool that once commanded nearly 20% of network hashrate collapsed under the weight of non-mining liabilities — a reminder that mining companies exposed to leveraged lending face risks far beyond fluctuating hashprice.

Poolin's bankruptcy has limited direct impact on Bitcoin's current price or network operations, as the pool's hashrate had already declined significantly since the 2022 freeze. The more immediate market event is the court-supervised auction of Poolin's two West Texas mining sites. Thor CALAP LLC has placed a $52 million stalking-horse bid, setting a floor price for the physical mining infrastructure. Those sites represent roughly 200 megawatts of capacity that will likely be redistributed to new operators. The Texas units had accumulated approximately $45.9 million in operating losses since opening, plus an additional $8.8 million from discounted equipment sales between fiscal 2023 and 2025.

Chief Restructuring Officer Michael DuFrayne outlined the scope of Poolin's liabilities in a court declaration. The largest single debt — $163.7 million — is owed to approximately 11,700 wallet holders who have been unable to access their funds since the September 2022 withdrawal freeze. "Recovery for the IOU holders now depends largely on what the Texas auction brings in," DuFrayne said, more than three years after their withdrawals were first frozen. The small fraction of assets relative to liabilities means most unsecured creditors face a steep shortfall.

**What is Poolin and what happened to it?** Poolin was one of the largest Bitcoin mining pools, founded in 2017 by former Bitmain executives. It filed for Chapter 11 bankruptcy on July 22, 2026, after never recovering from freezing user withdrawals in September 2022.

**How many users are affected by Poolin's bankruptcy?** Approximately 11,700 wallet holders are owed $163.7 million, according to a court declaration from Chief Restructuring Officer Michael DuFrayne. These users received IOU tokens in place of their Bitcoin in 2022 and have not been repaid.

**Will Poolin users get their money back?** Recovery for IOU holders depends on the outcome of a court-supervised auction of Poolin's Texas mining assets. The $52 million stalking-horse bid from Thor CALAP LLC is well below the $163.7 million owed, meaning most creditors face significant losses.

**What are the Texas mining sites being sold?** Poolin's two West Texas mining facilities are operated through its Lonestar Dream subsidiary. The sites shut down on July 10, 2026, and are being auctioned under court supervision. The sale covers physical infrastructure only, not the frozen wallet balances.

**Why did Poolin freeze withdrawals in 2022?** Poolin said it was facing "liquidity issues" during the 2022 crypto market crash, driven by a surge in withdrawal requests. The company issued IOU tokens as temporary placeholders but never converted them back to real Bitcoin.

**Who founded Poolin?** Poolin was founded in Beijing in 2017 by Zhibiao "Kevin" Pan, Fa Zhu, and Tianzhao Li — all former employees of Bitmain, the largest Bitcoin mining hardware manufacturer.

**How big was Poolin at its peak?** At its height, Poolin controlled nearly a fifth of Bitcoin's global hashrate, making it one of the three largest mining pools in the world.

**Where can I follow the bankruptcy case?** Court filings are available through the Chapter 11 case docket in the U.S. Bankruptcy Court for the District of New Jersey, with additional documentation accessible via Verita Global.

Poolin's bankruptcy marks the end of a once-dominant Bitcoin mining operation that collapsed under the weight of unregulated crypto lending products. Users still holding Poolin IOUs should monitor the Texas asset auction through the official court docket for updates on potential recovery. For investors evaluating mining-related projects, this case underscores the importance of distinguishing between core mining revenue and attached financial products. Read the full bankruptcy filings and follow the auction process through the U.S. Bankruptcy Court for the District of New Jersey for the most current information.