UpGate

Tag: Negative

  • Crypto Markets Reel as $700M Liquidated Amid FOMC Fears

    Crypto Markets Reel as $700M Liquidated Amid FOMC Fears

    Bitcoin Reverses Gains, Plunges to Ten-Day Low Amid Market Sell-Off

    Bitcoin’s rally on Monday, which saw the cryptocurrency reach $65,600 on two occasions, has abruptly reversed. The digital asset has not only relinquished all its gains but has fallen further, hitting a ten-day low.

    Most altcoins have mirrored Bitcoin’s decline, contributing to a surge in daily liquidations to approximately $700 million.

    The recent market movements paint a stark picture. Bitcoin had held steady above $64,000 over the weekend before climbing to a multi-day peak of $65,600 on Monday. Attempts to breach this resistance level twice were unsuccessful. The second rejection proved particularly sharp, sending the asset down by nearly $3,000 in a matter of hours. Consequently, Bitcoin plummeted to $63,000, a level not seen since July 17.

    Popular analyst CRYPTOWZRD commented on the recent downturn, suggesting that the largest digital asset has closed bearishly. The analyst emphasized the importance of Bitcoin maintaining its position above the current support level of $63,000, warning that failure to do so could lead to further declines to new local lows.

    Ethereum, which had been the top performer yesterday with a surge to a two-month high of $1,980, has since shed $100 and is now trading well below $1,900. XRP has experienced a 4.5% drop, falling to $1.06 and slipping below the significant $1.10 support. Solana (SOL) has seen a similar percentage decrease, while HYPE has plummeted by 6%.

    The significant market downturn has impacted over-leveraged traders, with more than 165,000 participants facing liquidation in the past 24 hours. The total value of liquidated positions has climbed to nearly $700 million on a daily basis, with Bitcoin and Ethereum accounting for the largest portions.

    This morning’s market crash occurs just one day before the U.S. Federal Reserve is scheduled to announce its interest rate decision. The prevailing uncertainty surrounding a potential rate hike has negatively affected risk-on assets, including cryptocurrencies.

  • NYC Property Database Sparks Privacy Concerns Amid Rising Security Risks

    NYC Property Database Sparks Privacy Concerns Amid Rising Security Risks

    A newly searchable database of New York City property records has drawn criticism from figures within the cryptocurrency industry, who express concerns that it could inadvertently expose wealthy property owners to physical harm. The database, released by the New York City Department of Finance, aggregates publicly available property assessment data into a format that critics argue makes it easier to identify individuals with significant real estate holdings.

    The core of the criticism, according to reports, is not that property records are public, but that their organization into a searchable database transforms scattered information into a centralized resource. This, critics argue, effectively singles out affluent individuals. Hayden Adams, associated with Uniswap, described the database as “the worst mass doxxing I’ve ever seen.” Mert Mumtaz of Helius stated that the database “crossed a line by transforming scattered public records into a centralized resource that effectively singled out wealthy individuals.” Nic Carter of Castle Island Ventures warned that “an easily searchable database of affluent property owners could make potential victims easier to identify.”

    These concerns are amplified by a documented rise in violent incidents targeting cryptocurrency holders. Security firm CertiK reported 72 verified crypto “wrench attacks” worldwide in 2025, a 75% increase from the previous year, resulting in over $40.9 million in losses. By the first half of 2026, CertiK reported 52 such attacks, with financial exposure surging nearly twelvefold year over year to $124 million.

    Recent incidents underscore the severity of these threats. In April, French authorities charged 88 suspects in a crackdown on violent crypto kidnappings. In May, U.S. prosecutors indicted three men accused of armed home invasions in California. In June, two Texas brothers pleaded guilty to kidnapping a Minnesota family and stealing over $8 million in cryptocurrency. These events highlight a pattern of escalating criminal activity linked to cryptocurrency wealth.

    The New York City Department of Finance annually releases assessed property values, and the FY2027 assessment roll, supplemental market value data, and property tax guides are publicly available through the city’s Open Data portal. However, critics argue that the aggregation and searchability of this data create a new level of vulnerability. As one critic noted, “Yes real estate records are semi public but this is an easily searchable database and target list.”

    Uncertainties remain regarding the exact date the searchable database was made public and whether the New York City Department of Finance has responded to the criticism. The specific year for some of the mentioned legal actions in France and the U.S. also requires clarification. Despite these uncertainties, the situation highlights a growing tension between public access to information and the need for individual security in an era of increasing digital connectivity and targeted crime.

    Why This Matters

    The materials describe a narrow update: The New York City Department of Finance released a searchable database of property assessment records. The exact date the searchable database was made public.

    Broader Context

    Source materials place the factual news in this context: The controversy centers on data published by the New York City Department of Finance, which annually releases assessed values used to calculate property taxes for every property in the city.

  • Storj Files Chapter 11 Bankruptcy; STORJ Token Drops 17%

    Storj Files Chapter 11 Bankruptcy; STORJ Token Drops 17%

    Storj Files for Chapter 11 Bankruptcy as STORJ Token Plunges 17%

    Decentralized cloud storage provider Storj Labs has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of West Virginia. The company aims to restructure its finances while ensuring its business operations continue without interruption.

    Accelerated Financial Reorganization

    In an open letter to its community, Storj’s management and board characterized the move as an accelerated financial reorganization. This process is designed to address obligations that largely predate the company’s current business strategy. Storj stated that it has already reduced its operations, implemented tighter cost controls, and operates with a leaner team, while continuing to receive support from Inveniam. However, the company acknowledged that its historical liabilities could not be resolved through business growth alone.

    Transparent Framework for Obligations

    The company believes the Chapter 11 process offers a transparent framework for resolving these obligations and will provide the necessary time to present a long-term business plan. Storj also sought to reassure users and token holders that its decentralized storage network remains fully operational and that the utility of the STORJ token within the network is unaffected by the bankruptcy filing.

    Token Price Reaction and Future Ownership

    Following the announcement, the STORJ token experienced a significant drop, falling by over 17% to $0.06. While the team acknowledged that trading volume has been “quiet and low” for an extended period, they declined to comment on the token’s price fluctuations during the bankruptcy proceedings.

    Storj expressed its intention for the company to ultimately be owned by those who have built and supported it, including management, its decentralized community, token holders, and other investors. As part of its planned restructuring, the company intends to propose a mechanism allowing token holders to participate in the equity of the restructured business. Specific eligibility requirements, structure, and terms are still under development and will be disclosed through the formal court process. Any proposed plan will require court approval and must adhere to legal priorities governing different stakeholder groups.

    Broader Crypto Industry Trends

    The filing occurs amidst a challenging month for the cryptocurrency industry, with several companies seeking bankruptcy protection. On July 22, Singapore-based Bitcoin mining firm Poolin and its U.S. affiliates, Lonestar Dream Inc. and Lonestar Taproot LLC, also filed for Chapter 11 protection in New Jersey. Separately, Movement Labs sought bankruptcy protection in Delaware following months of financial difficulties linked to its MOVE token launch.

    Other crypto companies have also ceased or are in the process of winding down their operations. For example, crypto derivatives exchange BitMEX announced its permanent closure on September 23, after more than 11 years in business. Shortly thereafter, BitMart revealed plans to wind down its trading operations, while DEX aggregator Odos and exchange Dango announced they would discontinue their services.

  • Thai SEC Charges Bitkub Over Undisclosed $47M Hack

    Thai SEC Charges Bitkub Over Undisclosed $47M Hack

    SEC Files Criminal Complaint Against Bitkub Over Alleged False Reporting Post-Hack

    Thailand’s Securities and Exchange Commission (SEC) has lodged a criminal complaint against cryptocurrency exchange Bitkub and two of its former directors, accusing them of submitting falsified reports to the regulator following a significant hack in 2021.

    Local media reports indicate the complaint, filed with Thailand’s Economic Crime Suppression Division, is linked to a cyberattack in May 2021 that saw 16 types of digital assets, valued at 1.7 billion baht (approximately $47 million), stolen from the exchange. The SEC alleges that from May to October 2021, Bitkub’s daily net-capital filings did not reflect any substantial changes in its assets, thereby concealing the loss and violating the country’s Digital Asset Business Decree.

    The two former directors, Sakolkorn Sakavee and Thaweesap Rawan, are accused of making false entries to deceive the regulator into believing customer assets remained intact. The case has now been passed to the police and prosecutors, who will determine whether to pursue legal action in court.

    Bitkub has stated that the matter pertains to a five-year-old reporting decision and that customer funds are secure. The company explained that those responsible opted not to disclose the theft of digital assets to prevent a bank run, and that its co-founders subsequently purchased replacement assets of equivalent value, ensuring neither Bitkub nor its customers incurred financial losses. The SEC had previously confirmed the exchange’s holdings were intact as of September 2025, according to the company.

    Former Director Takes Responsibility in Video Statement

    In a video statement shared on Facebook, Sakolkorn Sakavee, one of the former directors, has reportedly taken sole responsibility for the actions, as translated by the Bangkok Post. Sakavee is said to have admitted to altering the filings himself without informing other directors or staff, and withholding news of the hack due to fears of panic withdrawals and a “bank run” that could have jeopardized the exchange’s survival. He further stated that Bitkub’s founders used their personal funds to repurchase the stolen assets, ensuring all customers were fully reimbursed. Sakavee has since apologized, resigned from the company’s boards, and pledged his cooperation with regulatory authorities.

    Case Emerges Amidst Bitkub’s Public Listing Efforts

    This legal challenge comes as Bitkub, once the leading cryptocurrency exchange in Thailand, is working towards a public listing. The exchange has since been surpassed by Binance’s local operation, Binance TH, which currently ranks 31st among global exchanges compared to Bitkub’s 68th, according to CoinMarketCap data. Bitkub had previously postponed a planned Initial Public Offering (IPO) on the Stock Exchange of Thailand in November 2025 due to a slump in the local market and was reportedly considering a $200 million offering in Hong Kong.

  • Crypto Exchange Shuts Down Following BitMEX

    Crypto Exchange Shuts Down Following BitMEX

    Crypto Exchange BitMart to Cease Operations

    The cryptocurrency market is witnessing a wave of closures, with BitMart announcing it will wind down its trading operations. This move follows a trend of exchanges shutting down amidst a particularly harsh bear market, a stark contrast to previous downturns where staff reductions were more common.

    BitMart, which launched during the 2017 bull market and expanded to support over 1,700 cryptocurrencies, stated it has begun an “orderly” cessation of its trading activities. New user registrations, deposits, and the opening of new trading orders have already been suspended. All trading services are slated to end a month from the announcement, with the platform officially shutting down at 15:59 UTC at the end of January. Withdrawals, however, will remain accessible.

    The exchange has urged its users to close their trading positions, complete any necessary Know Your Customer (KYC) procedures, and transfer their funds out of the platform promptly.

    A tweet from BitMart’s official account on July 26, 2026, confirmed the decision, citing a “careful evaluation of the Company’s operating conditions, market environment, and future strategic direction.”

    Token Plummets Amidst Shutdown News

    The native token of BitMart, BMX, experienced a significant price drop following the announcement, plummeting by over 60% within a 24-hour period. Prior to the news, BMX was trading at $0.32, but it fell to $0.09 by press time. The token remains 90% below its all-time high of $0.619, recorded in early 2024, according to CoinGecko data.

    Broader Industry Contraction

    BitMart is not the only platform to announce its closure recently. Just days prior, the cryptocurrency derivatives platform BitMEX, co-founded by Arthur Hayes, revealed it would cease operations on September 23. Despite its nearly decade-long presence in the market, BitMEX has seen a decline in user activity in recent years.

    The trend extends to decentralized exchanges (DEXs) as well. Odos, a popular DEX aggregator, announced on July 24 that it would halt all services by the end of July. Similarly, Dango, a competitor, made a similar announcement on the same day. The self-described ‘Endgame Exchange’ cited “various reasons” for its decision without providing specific details. Dango will stop trading on July 29, and its associated L1 blockchain will cease operations on August 13.

  • Pi Network Ecosystem Updates Continue Amidst PI Token Price Decline and Development Uncertainties

    Pi Network Ecosystem Updates Continue Amidst PI Token Price Decline and Development Uncertainties

    The Pi Network ecosystem has seen several new developments and updates over the past month, including the release of new developer tools, a redesigned Pi Browser, and the distribution of a Testnet token. However, these advancements have occurred concurrently with a substantial decline in the native PI token’s market value, which has reached new all-time lows.

    Ecosystem Development Highlights

    The Pi Network Core Team marked Pi2Day (June 28) by unveiling several new tools for the Pi App Studio: PiVerify, Pi Sign-In, and SoloHost. According to the Core Team, these tools are designed to enhance the developer experience and make it easier for users to access applications within the Pi ecosystem. Further improvements to the Pi App Studio include expanded support for persistent storage and an enhanced backend infrastructure, enabling the development of more sophisticated and reliable applications.

    In addition to developer-focused updates, the Pi Browser has received a redesigned interface and improved navigation. The team stated that this redesign aims to enhance the overall user experience, making it easier for users to discover ecosystem applications and providing developers with better visibility for their projects.

    Furthermore, the Core Team recently completed the distribution of Slice, a Testnet token, to nearly 480,000 participants. The team emphasized that Slice is intended for testing purposes to help developers and the community prepare for future Mainnet token launches.

    Mainnet Migration Uncertainty and Token Performance

    A protocol update, v25, was slated for Mainnet migration with a deadline of July 22 for eligible validators to upgrade. However, the deadline has passed without official confirmation from the team regarding the successful deployment of the migration. It is unclear if the migration was completed, and uncertainty remains regarding the status of this development milestone.

    Despite these ongoing developments within the Pi Network ecosystem, the native PI token has experienced a significant downturn in its market performance. Over the past few weeks, the PI token broke below the $0.10 support level. On July 14, the token reached an all-time low of just over $0.07. While it has recently been fighting to stay above $0.08, the PI token is down by over 97% since its all-time high of $2.99, which was recorded in February. The article reports that the PI token’s price decline is noted, but the exact causes for this decline beyond general market trends remain unclear. Uncertainty also surrounds reported instances of failed PI token unlock attempts, which may be linked to phishing scams targeting wallet passphrases.

    Why This Matters

    The Pi Network Core Team introduced new tools (PiVerify, Pi Sign-In, SoloHost) to the Pi App Studio, expanded its persistent storage capabilities, set and missed a deadline for a Mainnet migration requirement (v25), rolled out a redesigned Pi Browser, and distributed a Testnet token called Slice to participants for Pi Launchpad testing. Uncertainty remains regarding whether the Mainnet migration for protocol update v25 was successfully deployed after the July 22 deadline.

    Broader Context

    Although it wasn’t the busiest and most eventful month in its history, the past 30 days have still shown some new developments, features, and updates around the broader Pi Network ecosystem.

  • Poolin Files Bankruptcy, Seeks $52M Texas Asset Sale

    Poolin Files Bankruptcy, Seeks $52M Texas Asset Sale

    Singapore-based Bitcoin mining firm Poolin and its U.S. affiliates, Lonestar Dream Inc. and Lonestar Taproot LLC, filed for Chapter 11 bankruptcy protection in New Jersey on July 22. The company is also seeking court approval for a $52 million sale of its Texas mining properties.

    Bankruptcy Filing and Financial Overview

    The bankruptcy filing comes nearly four years after Poolin froze customer withdrawals, leaving thousands of wallet users with IOU tokens and transforming a mining business failure into a protracted creditor dispute. Court records filed in the U.S. Bankruptcy Court for the District of New Jersey indicate Poolin listed between 10,001 and 25,000 creditors, with petition assets estimated between $1 million and $10 million.

    Chief Restructuring Officer Michael DuFrayne’s declaration stated prepetition obligations at approximately $173.1 million, with roughly $163.7 million attributed to unsecured IOUs issued to Poolin Wallet customers. The company’s current bankruptcy proceedings are focused on divesting its Texas assets rather than resuming mining operations. Lonestar Dream ceased mining and hosting activities at its Pyote and Tarbush sites on July 10, according to the filing documents.

    Texas Asset Sale

    Poolin has entered into asset purchase agreements with Thor CALAP LLC for a combined $52 million stalking-horse bid. This offer includes $15 million for the Pyote property, along with associated power rights and equipment, and $37 million for Tarbush power rights and equipment. The transaction remains contingent on competing bids and court approvals.

    The company spent over three months marketing the assets, engaging with more than 335 potential buyers, including cryptocurrency miners and operators in the artificial intelligence and high-performance computing sectors. This outreach resulted in 28 confidentiality agreements, seven letters of intent, and three additional expressions of interest.

    Challenges in Texas Expansion

    Poolin’s expansion in Texas faced significant hurdles after the company relocated its mining operations from China following Beijing’s 2021 ban on mining. The company had anticipated receiving up to 600 megawatts of power but only secured 100 megawatts. Consequently, the equipment procured for its U.S. operations proved to be in excess of its needs.

    The sale of some of this surplus equipment resulted in an $8.8 million loss between fiscal years 2023 and 2025. Ultimately, Lonestar Dream and Lonestar Taproot accumulated approximately $45.9 million in losses.

    Broader Financial Difficulties

    Poolin’s financial woes extend beyond its mining activities. In June 2022, as Bitcoin prices dropped below $20,000, Tether issued margin calls against collateral the firm had pledged through the Poolin Wallet. The company subsequently transferred nearly all of this collateral to Antalpha and secured a loan of about $213 million against crypto assets valued at just under $356 million.

    However, in September 2022, Poolin Wallet suspended withdrawals and issued approximately $163.7 million worth of IOU tokens to customers. According to the filing, around 11,700 wallet users held balances exceeding $100.

    Bitcoin’s further decline to below $16,800 in November 2022 led Poolin to cease operations, and Antalpha liquidated the collateral. Management estimated that approximately $260 million was owed to Antalpha against digital assets valued at close to $265 million at that time.

    Poolin was once a dominant force in the Bitcoin mining landscape, holding roughly 14% of the Bitcoin network’s mining share in 2019. The company’s remaining value now hinges on the sale of its Texas assets and the resolution of the bankruptcy proceedings.

    The court-supervised auction will determine the recovery amount for creditors. Any distributions will be subject to competing bids, sale expenses, administrative claims, and the approval of the proposed liquidation plan.

  • Reality Check: Only 7% of Major New Crypto Tokens Launched Since 2024 Trade Above Launch Price

    Reality Check: Only 7% of Major New Crypto Tokens Launched Since 2024 Trade Above Launch Price

    A recent analysis by CryptoRank reveals a stark reality for new cryptocurrency tokens launched since 2024: only approximately 7% are currently trading above their initial launch price. The study, which tracked 113 major cryptocurrency tokens with a market capitalization exceeding $100 million since their token generation event (TGE), found that a significant majority have seen substantial declines.

    According to CryptoRank, the median return for these tracked tokens stands at a steep -95.7%. Out of the 113 tokens analyzed as of July 21, 2026, only 8 tokens managed to trade above their launch price, indicating a high failure rate for new entrants in the major cryptocurrency market segment.

    Outlier Performance Amidst Decline

    Among the few tokens that have shown positive performance, HYPE (Hyperliquid) recorded the most significant increase, soaring 1,519% from its launch price. ONDO (Ondo Finance) also demonstrated strong growth, up 101.4%. Other tokens with double-digit increases include EVA (EverValue Coin) at 20.3% and NIGHT (Midnight Network) at 16.5%. Notably, HYPE was also included in the new S&P Pantera Digital Asset Index.

    Market Context and Contributing Factors

    These findings emerge as the broader cryptocurrency market shows signs of recovery. Bitcoin, for instance, climbed above $66,000 this week, influenced by increased ETF inflows and softer US inflation data. However, the performance of newer, major tokens suggests that the overall market uptrend has not translated into widespread success for recent launches.

    CryptoRank attributes the major drawdowns in many of these projects to factors such as sell-offs, thin liquidity, and regulatory uncertainty. The market has also experienced significant crashes in the past two years due to exploits and other unforeseen events.

    The analysis highlights that even among the tokens that are currently profitable, only a small handful have achieved outsized performance. The study’s sample is specifically limited to projects with a market capitalization above $100 million as of July 21, providing a focused view on more established new ventures rather than smaller, more speculative tokens.

    While the exact timeframe for ‘launched since 2024’ and the specific TGE prices for each token were not detailed in the report, the overall trend indicates a challenging environment for new cryptocurrency projects aiming for sustained value post-launch. The methodology for excluding certain assets from the S&P Pantera Digital Asset Index also remains unexplained.

    Why This Matters

    The materials describe a narrow update: A survey of 113 cryptocurrency tokens with a market capitalization exceeding $100 million since their token generation event (TGE) revealed that only 8 tokens (approximately 7%) are currently trading above their launch price. The exact timeframe for ‘launched since 2024’ is not specified.

  • WLD Tumbles 10% Post-Funding, BTC Hovers Near $64K

    WLD Tumbles 10% Post-Funding, BTC Hovers Near $64K

    Bitcoin Faces Rejection, Struggles Below $64,000

    Bitcoin experienced a sharp reversal this week, failing to sustain its climb above $67,000 and subsequently dipping below the $64,000 mark, where it currently remains under pressure.

    Most major altcoins are also trading in negative territory on a daily basis. Ethereum (ETH) has fallen to $1,850, XRP is testing its $1.10 support level, and Zcash (ZEC) has seen a 6% decline.

    Market Sentiment Turns Sour After Brief Rally

    The past week initially appeared promising for the leading cryptocurrency, buoyed by positive market sentiment. After a dip to $63,750 on Monday, Bitcoin embarked on a significant rally, reaching $67,000 on Tuesday evening – a level not seen in over a month. This surge was attributed to renewed net inflows into Bitcoin ETFs and substantial purchases by large holders, often referred to as “whales.”

    However, the underlying fragility of the market prevented further upward momentum, and Bitcoin began to decline in the subsequent days. It dropped to $64,750 on Thursday before a brief one-thousand-dollar increase on Friday morning. This was followed by another rejection, a pattern that has become typical for Fridays in recent weeks. Bitcoin then shed $2,000 after U.S. President Trump signaled the potential imposition of new tariffs on the European Union.

    As of press time, Bitcoin has been unable to mount a significant recovery and continues to trade around $64,000. Its market capitalization has fallen to $1.285 trillion, while its dominance over altcoins has seen a slight rebound to 56.3%.

    Worldcoin Leads Losses Amid Funding News

    Worldcoin’s native token (WLD) has emerged as the day’s worst performer, plummeting by over 10% to $0.34. This significant drop comes despite the project announcing a successful $52.5 million funding round aimed at expanding its World ID infrastructure. Other notable decliners include Ondo (ONDO), down 7%; Loopring (LIT), down 6.3%; and Zcash (ZEC), down 6%. The privacy coin has moved further away from the $500 mark.

    Larger-cap altcoins are also experiencing modest losses, generally in the 1-2% range. Ethereum is trading below $1,860, XRP is below $1.10, Solana (SOL) has fallen to $74, and Hyperion (HYPE) is down to $57. Monero (XMR) remains one of the few altcoins showing gains, with a 2.4% increase pushing its price to $365.

    The total cryptocurrency market capitalization has decreased by approximately $20 billion in the last 24 hours, now standing at $2.280 trillion, according to CoinGecko.

  • Poolin Bankruptcy Filing Reveals Significant Shortfall in Asset Recovery for Users

    Poolin Bankruptcy Filing Reveals Significant Shortfall in Asset Recovery for Users

    Poolin Technology Pte. Ltd., once a prominent Bitcoin mining pool operator, along with its U.S. affiliates Lonestar Dream Inc. and Lonestar Taproot LLC, has filed for Chapter 11 bankruptcy. The filing, made in the U.S. Bankruptcy Court for the District of New Jersey on July 22, reveals a substantial financial deficit, with prepetition obligations exceeding $100 million against assets valued at less than $10 million. This significant gap raises concerns about the recovery prospects for approximately 11,700 wallet holders who are owed $163.7 million in unpaid IOU tokens.

    The bankruptcy proceedings stem from Poolin’s decision to freeze withdrawals for its Wallet and Pool Account users in September 2022, citing liquidity issues exacerbated by the broader crypto market downturn that year. Rather than returning customer funds, the company issued IOU tokens, which have not been repaid. According to a court declaration from Chief Restructuring Officer Michael DuFrayne, these IOU debts amount to $163.7 million.

    Asset Sale and Insufficient Bid

    As part of the restructuring process, Poolin’s Texas mining and hosting operations, managed by Lonestar Dream, ceased operations entirely on July 10. Thor CALAP LLC has submitted a $52 million stalking-horse bid for these West Texas sites. A stalking-horse bid serves as an initial offer that sets a minimum price for a court-supervised sale, requiring any subsequent bids to exceed this amount. However, this bid specifically covers only the physical mining infrastructure and does not address the frozen wallet balances. The amount is also considerably less than the total sum owed to users.

    Further compounding the financial challenges, the Texas units incurred approximately $45.9 million in losses since their inception. An additional $8.8 million in losses were recorded from the discounted sale of equipment between fiscal years 2023 and 2025.

    Uncertain Recovery

    The recovery for the 11,700 IOU holders is now largely dependent on the outcome of the auction for the Texas assets, a process that occurs more than three years after their withdrawals were initially frozen. Chapter 11 bankruptcy is a U.S. legal framework that allows a company to continue operating under court supervision while it reorganizes its debts or sells off assets. Poolin, founded in Beijing in 2017 by veterans of Bitmain, once controlled nearly a fifth of the global Bitcoin network’s hashrate. The company later expanded into crypto lending and interest-bearing accounts through its Poolin Wallet product. The current financial distress and asset sale underscore the uncertainties surrounding the full repayment of customer debts, with the final recovery amount remaining unclear.

    Why This Matters

    The materials describe a narrow update: Poolin Technology Pte. The final amount recovered from the auction of Poolin’s Texas sites.

    Broader Context

    Source materials place the factual news in this context: Poolin was founded in Beijing in 2017 by Zhibiao “Kevin” Pan, along with Fa Zhu and Tianzhao Li, all veterans of mining-hardware maker Bitmain.