Bitcoin Mining Pool Poolin Stops Withdrawals Amid Liquidity Crisis

Crypto mining platform Poolin – one of the largest in the world – has frozen withdrawals until further notice as its managers struggle with liquidity issues and operational stability.

Poolin suspended withdrawals by 6pm ET on Monday as part of a defensive move designed to navigate a “dull crypto market”, according to a statement from the firm on Sunday.

Flash trades and internal transfers within Poolin’s systems have also been suspended indefinitely. The firm, which supports mining on multiple proof-of-work chains, said it would continue to explore “strategic options with various parties.”

Poolin nevertheless said that users’ assets in PoolinWallet are safe and that the company’s net worth was positive. Mass withdrawals were partly to blame for the freeze, according to Poolin’s statement.

Daily mined coins have continued to be paid out per day, the firm said, while other coins have not been affected.

Liquidity has continued to plague several crypto firms, including major bitcoin miners, following a market shake-up earlier this year. It was later revealed that major crypto borrowers had been handed over while exposed to troubled projects, making them susceptible to outsized crypto price movements.

In an effort to stabilize its liquidity problems, Poolin said it would cut certain fees and switch its payout method to bitcoin miners from Full-Pay-Per-Share (FPPS) to Pay-Per-Last-N-Shares (PPLNS).

The methods differ slightly with FPPS offering miners a share of transaction fees in a given pool, while PPLNS only generates a profit based on the number of blocks mined.

Poolin has mined just over 10% (1,381) of all bitcoin blocks in the past three months, according to BTC.com data, converting to 8,361 BTC ($166.4 million at current prices). The pool currently mines around 3.6% of all ether blocks.

Poolin said it would take a snapshot of the remaining bitcoin and ether balances in the mining pools to determine what is owed to miners.

An update on the payout schedule for remaining balances will be released once details are finalized, said Poolin, who expects additional details, as well as solutions, to be provided to users sometime next week.

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