Singapore-based Poolin and its U.S. subsidiaries Lonestar Dream Inc. and Lonestar Taproot LLC filed voluntary Chapter 11 petitions on July 22 in the U.S. Bankruptcy Court for the District of New Jersey. According to court filings, the proceedings are intended to facilitate an orderly sale of remaining assets rather than revive the business as an operating mining company. The debtors estimated they have between 10,001 and 25,000 creditors, assets worth between $1 million and $10 million, and liabilities ranging from $100 million to $500 million. A declaration from Chief Restructuring Officer Michael DuFrayne puts the debtors' prepetition obligations at approximately $173.1 million, with about $163.7 million relating to unsecured IOUs issued to Poolin Wallet customers after withdrawals were suspended during the cryptocurrency market downturn in 2022.
The debtors have signed separate asset purchase agreements with Thor CALAP LLC, establishing a combined stalking-horse bid of $52 million for Texas mining assets. Court filings show a $15 million offer for the Pyote property with related power rights and equipment, while a separate $37 million bid covers the Tarbush site's power rights and equipment. Under Section 363 of the U.S. Bankruptcy Code, the stalking-horse agreements set minimum prices while allowing higher competing offers before final court approval. The Tarbush transaction excludes the site's surface-use agreement, and each site may be sold separately. Mining operations at the Pyote and Tarbush facilities in West Texas ended on July 10, with only a limited workforce remaining for site security and sale assistance.
According to the Chapter 11 declaration, Poolin owed approximately $173.1 million before bankruptcy, with about $163.7 million relating to unsecured IOUs issued to Poolin Wallet customers after withdrawals were suspended during the cryptocurrency market downturn in 2022. The company transferred customer collateral to Antalpha Technologies and borrowed roughly $213 million against cryptocurrency valued at approximately $355.8 million at the time. Around 11,700 wallet users held balances exceeding $100 when approximately $163.7 million worth of IOUs were issued. Since then, Poolin has not resumed normal business operations, with remaining assets including approximately $1.2 million in a New Jersey bank account, an office lease, and an intercompany claim. Certain wallet holders have also filed legal claims against the debtors in the U.S. and Singapore.
The debtors spent approximately three months marketing assets to more than 335 prospective buyers and investors, targeting cryptocurrency miners, artificial intelligence operators, hyperscale data center companies, real estate investment trusts, private equity firms, and cryptocurrency miners. The marketing effort resulted in 28 signed nondisclosure agreements and seven letters of intent covering both individual facilities and the combined portfolio. Interest from AI infrastructure operators increased the potential value of the sites due to existing electrical systems and power capacity, even though Poolin's own mining business had become unprofitable. Since their formation, Lonestar Dream and Lonestar Taproot accumulated losses of approximately $45.9 million. The debtors also reported $8.8 million in equipment-sale losses from fiscal 2023 through fiscal 2025, as they ordered more mining equipment than the sites could accommodate.
Founded in China in 2017 by Zhibiao "Kevin" Pan, Fa Zhu, and Tianzhao Li, Poolin grew into one of the world's largest bitcoin mining pools and held the top global position by September 2019. According to Glassnode data, the company's share of global hashrate reached roughly 18-20% in 2019, meaning more bitcoin was being mined through Poolin than through any other single pool on earth. However, the business model came under pressure after China prohibited bitcoin mining in 2021 and digital asset prices declined sharply. Users were already complaining about withdrawal delays on Poolin's Telegram channels in late 2022, a period plagued by crypto companies facing liquidity squeezes as that year's market downturn came to a head. Co-founder Kevin Pan acknowledged in a WeChat post that the company was "facing liquidity problems" while insisting user funds were safe, but the Texas mining expansion he had bet on to rebuild the business was itself stalled with grid connection approvals delayed. The bankruptcy follows similar developments in the mining sector, with Russian miner BitRiver facing court-supervised bankruptcy over unpaid debts tied to power supply. The Texas business was previously the subject of a proposed $49 million acquisition by China Green Agriculture, announced in December 2023, but the deal ultimately did not transfer ownership. The debtors expect the current auction to produce a distribution for unsecured creditors, though final recovery will depend on competing bids, sale expenses, administrative costs, and court approval of a liquidation plan.
