Poolin Wallet, one of the largest Bitcoin mining pools in the world, has admitted to having liquidity issues. As a result, on September 5, it announced that Poolin Mining had suspended Bitcoin and Ether withdrawals in order to protect assets and maintain liquidity. In addition, PoolinWallet stated that it is actively pursuing “strategic solutions with multiple stakeholders.”
Poolin CEO and founder Kevin Pan announced the company was experiencing liquidity challenges on Sunday but assured customers that their investments were secure. Customers have complained about the speed of withdrawals dating back to at least August.
What Do You need to Know about Poolin Mining?
Poolin mined the fourth-most transaction blocks in the last 24 hours, according to BTC.com statistics. Poolin did not specify the source of the liquidity issues, but CoinDesk discovered complaints about withdrawal issues in the service’s Telegram channel. CEO and founder of Poolin, Kevin Pan, suggested borrowing money to help the company’s finances in a social media post.
Poolin Mining Suspends Withdrawals
Poolin, a Chinese mining pool, announced that withdrawals from its wallet had been halted due to liquidity issues. Given Poolin’s massive size and the potential impact of the withdrawal ban on the cryptocurrency industry, the mining pool’s hash rate share for Bitcoin mining is 10.4%. In two weeks, the team promised to provide an update on the restart of withdrawals.
How Will Poolin Mining Address the Problem?
The company announced that withdrawals from the Pool Account would be suspended. “The resume’s timetable and plans will be made public within two weeks. Please remember that Pool Account is a wallet feature built into Pool. Direct payouts from mining pools and routine mining are unaffected.” Poolin promised on September 6 to take a screenshot of the remaining BTC and ETH balances on the Pool to calculate the balances.
After September 6, they will continue distributing the daily mined coins, but it has no effect on other coins.
According to the post, they will reveal it once the details of the distribution plan for outstanding funds are finalized. According to the company, “this requirement aids in conserving assets, stabilizing liquidity, and operations amid the gloomy crypto market.”
Meanwhile, they continue to consult with other partners on strategic options. For instance, the message says that all of PoolinWallet’s assets are secure and that more information and fixes will be available in a week.
Another article claims that Poolin Wallet is currently experiencing liquidity issues due to recent increased withdrawal demand. However, from September 8 to December 7, the company will not charge clients fees for mining Bitcoin and Ethereum, aside from various promotions for those with large pool balances.
Suspension of Withdrawal in the Past
Poolin is not the first cryptocurrency company to suspend withdrawals this year, and it will not be the last. In July, Voyager Digital Ltd., a cryptocurrency broker, halted withdrawals before declaring bankruptcy. However, withdrawals have since been reinstated.
Hodlnaut and Vauld are two more companies that have suspended withdrawals amid the current crypto winter. After being ordered to sell off British Virgin Islands assets, Three Arrows Capital, a prominent Poolin investor, filed a Chapter 15 bankruptcy petition in a New York court in July.
Celsius, a cryptocurrency lending company, halted withdrawals in June due to liquidity concerns similar to Poolin’s.
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