Singapore Arbitrator Rules Against Mining Software Firm Poolin’s IOU Model, but the Firm Hasn’t Paid Yet

An independent arbitrator in Singapore has ordered embattled crypto mining software firm Poolin to return 88 bitcoins (BTC), worth about $1.5 million at recent prices, to a customer whose withdrawals were halted and crypto turned into I-owe-you (IOU) tokens.

Poolin Wallet said on Sept. 5 in a Medium blog post that it was experiencing a liquidity crunch, meaning it didn’t have assets immediately available that customers could withdraw. The firm thus officially paused withdrawals in early September and told customers that their funds would be converted to IOU tokens, which could be converted back to crypto quarterly.

But, on Tuesday, Poolin CEO Kevin Pan told CoinDesk that the IOU payouts haven't been issued yet because the company’s cash flow is “still low.”


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