Coin Cloud crypto ATM operator files for bankruptcy, owes over $100M to Genesis
The company was in “hyper-growth” in January 2022, now it has over 5,000 creditors and debts over $100 million; bankrupt Genesis is its largest creditor.
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Cash Cloud, the operator of Coin Cloud digital currency automatic teller machines (ATMs) in the United States and Brazil, filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the District of Nevada on Feb. 7.
According to its filing, the company has liabilities between $100 million and $500 million, with between 5,001 and 10,000 creditors and assets between $50 million and $100 million. Cash Cloud’s biggest creditor is Genesis Global Trading, the brokerage subsidiary business of Digital Currency Group’s bankrupt lending arm. It has an unsecured claim of over $108 million from Genesis, far outstripping the next largest claimant, which is owed over $8 million.
Bloomberg reported on Nov. 22, citing unnamed sources, that Coin Cloud had received an unsecured loan of around $100 million from Genesis and was at that time in talks with it seeking “additional capital” to help it restructure a debt of about $125 million. Genesis was already under financial pressure, and it is not clear that Coin Cloud received additional credit from it at that time.
Related: US city sets up Bitcoin ATM in airport after crypto payment adoption
Coin Cloud was a pioneer in its field, having been active since at least 2014. Coin Cloud stated in a blogpost in January 2022 that it had over 1,100 ATMs at the time and said it was “at a pivotal time in the company’s hyper-growth.” The cryptocurrency ATM industry experienced a sharp downturn in the second half of 2022. In addition, cryptocurrency has been incorporated into existing ATMs in places, competing with purpose-built crypto ATMs.
For a limited time only use promo code 15GIFTEEN to enjoy 15% OFF at a Coin Cloud Bitcoin ATM location.
Check out the thread to see how you can redeem your offer! pic.twitter.com/OsEAQCrjEB— Coin Cloud (@CoinCloudDCM) December 1, 2022
Currently its website claims Coin Cloud has more than 5,000 ATMs that handle over 40 cryptocurrencies. Coin Cloud was ranked second worldwide by number of ATMs at the point when it had 4,826 machines, nearly all of which were located in the United States.
