As volatility in the crypto market continues, another company has decided to halt all withdrawals as a means of retaining and controlling liquidity. This time, the firm in question is a crypto mining pool provider known as Poolin, and none of the firm’s customers can gain access to their money.
Poolin Is Preventing Customers from Accessing Their Money
The maneuver has got a lot of crypto traders and analysts worried given that these kinds of steps only lead to more trouble down the line. Thus far, Poolin is following in the footsteps of now doomed and infamous lending company Celsius, which halted withdrawals in the summer of 2022 and has since gone on to file for bankruptcy protections.
Voyager Digital is another company that halted withdrawals not long before it entered the bankruptcy forum. This occurred earlier in the summer, while other digital currency firms and exchanges – such as Hodlnaut and Vauld – took similar measures to prevent customers from withdrawing funds.
The digital currency arena is undergoing its harshest bear conditions in years. The industry has lost about $2 trillion in overall valuation, while leading digital currencies – such as bitcoin and Ethereum – have lost around 70 percent since last November when they hit new all-time highs. Thus far, the crypto space isn’t showing any serious signs of recovery, and many companies are losing their footing.
In a statement, Poolin addressed rumors that it was in trouble and said:
This imperative serves our goal of preserving assets [and] stabilizing liquidity and operations [during] the dull crypto market. Meanwhile, we continue to explore strategic alternatives with various parties.
While the remarks appear to make light of the company’s recent decisions, many investors aren’t buying that all is well given this statement follows one just a few weeks ago in which all assets held in Poolin wallets were deemed “safe.”
Poolin was founded five years ago in 2017. As a multi-crypto mining pool and custodial wallet system, the company garnered heavy attention and fame during its prime and received more than $10 million in seed funding from a wide array of crypto-based hedge funds including Three Arrows Capital, which – ironically – appears to be biting the dust right as Poolin is suffering.
This Has Happened a Lot, Lately
Not long ago, Three Arrows announced it was (like Celsius) undergoing bankruptcy proceedings and working on ways to come back from the crypto fire that’s been burning for the past several months. Other firms to invest money into Poolin include Ledger Prime, Hash Key, and Fenbushi Capital. As it stands, Poolin operates the fourth largest BTC mining pool with a hash rate share exceeding ten percent.
At press time, all wallet funds cannot be accessed, though the company’s many mining pools centered around assets like LTC, BTC, and ETH will remain in operation.