Poolin Technology, a Singapore-based company that was one of the world’s largest Bitcoin (CRYPTO: $BTC) mining pools, has filed for Chapter 11 bankruptcy protection in the U.S.
The bankruptcy filing comes after Poolin’s Texas Bitcoin mining operations shutdown on July 10 of this year.
The filing, which seeks to protect Poolin from its creditors, lists estimated debts of as much as $500 million U.S. versus assets of $10 million U.S.
In the bankruptcy filing, Poolin says that its creditors are owed $173.1 million U.S., including retail investors.
Rather than pursuing a reorganization, the Bitcoin miner plans to use the Chapter 11 process to sell all of its crypto mining assets and cease operations.
Poolin was founded in China in 2017 and was widely regarded as the world’s largest cryptocurrency mining pool provider.
The company also developed Poolin Wallet, which offered users the ability to borrow Tether’s stablecoin (CRYPTO: $USDT) against cryptocurrency collateral.
Poolin also offered interest-bearing deposit products to investors.
But after China banned Bitcoin mining in 2021, Poolin’s attempt to rebuild its operations in the U.S. encountered difficulties.
The company borrowed $213 million U.S. against crypto then valued at $355.8 million U.S. However, prices for Bitcoin and other cryptocurrencies have fallen sharply since then.
Poolin said the situation left it unable to service debt and customer withdrawals.
Bitcoin’s price has been cut nearly in half since last October to currently trade at $64,350 U.S.
