One of the largest cryptocurrency ATM operators, Coin Cloud, which claims to operate more than 5,000 crypto ATMs, has filed for bankruptcy in the U.S. The company’s largest creditor is Genesis Global Trading, whose parent company also recently filed for bankruptcy in the U.S.
Coin Cloud Files for Bankruptcy
Cash Cloud Inc., a digital asset ATM operator doing business as Coin Cloud, voluntarily filed for Chapter 11 bankruptcy on Tuesday.
In its filing with the U.S. bankruptcy court for the District of Nevada, Coin Cloud declared an estimated number of creditors of between 5,000 and 10,000. In addition, the company estimated that its total assets range between $50 million and $100 million while its total liabilities fall between $100 million and $500 million.
Crypto lender Genesis Global Trading Inc. is listed as Coin Cloud’s largest unsecured creditor, with a total claim of $116,353,435. After deducting the value of collateral, Genesis Global Trading’s unsecured claim amounts to $108,568,655, the filing shows.
On Jan. 19, Genesis Global Holdco LLC and two of its lending business subsidiaries, including Genesis Global Capital, filed for Chapter 11 bankruptcy in the Southern District of New York. However, the filing does not include Genesis Global Trading. Genesis’ bankruptcy followed a lawsuit against the company by the U.S. Securities and Exchange Commission (SEC) alleging that the crypto lender offered and sold unregistered securities to retail investors.
On its website, Coin Cloud claims that it operates more than 5,000 two-way crypto ATMs across the U.S. and Brazil. The machines allow users to buy and sell over 40 cryptocurrencies, including bitcoin, bitcoin cash, litecoin, and ether. They also offer a number of stablecoins, gaming tokens, and decentralized finance (defi) coins.
Crypto ATM tracking website Coin ATM Radar ranks Coin Cloud as the second largest crypto ATM operator with 4,826 machines — second only to Bitcoin Depot with 6,634 machines. According to the tracking site, there are currently 38,340 crypto ATMs in 81 countries.
Besides Genesis Global, a number of crypto firms filed for bankruptcy last year, including FTX, Core Scientific, Celsius Network, Voyager Digital, Three Arrows Capital, and Blockfi.
Do you think more crypto ATM operators will file for bankruptcy? Let us know in the comments section below.
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Author: Kevin Helms