One of the biggest crypto ATM operators, Coin Cloud, which proclaims to run more than 5,000 crypto ATMs, has submitted for Chapter 11 bankruptcy in the US. The entity filing the chapter is the guardian company.
Coin Cloud Bankruptcy Details
Coin Cloud Inc., a digital asset ATM operator doing business as Coin Cloud, filed for voluntary Chapter 11 on Tuesday.
In its filing with the US Bankruptcy Court for the District of Nevada, Coin Cloud estimated that it had between 5,000 and 10,000 creditors. Additionally, the firm estimated that its total assets ranged from $50 million to $100 million, while its total liabilities ranged from $100 million to $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 subtracting for collateral value, Genesis Global Trading’s filing shows unsecured claim amounts up to $108,568,655.
On January 19, Genesis Global Holdco LLC, two of its lending business subsidiaries, and collectively Genesis Global Capital filed for Chapter 11 in the Southern District of New York. However, the filing does not include Genesis Global Trading. The bankruptcy followed a lawsuit against the company by the US Securities and Exchange Commission (SEC) alleging that the crypto lender sold and offered unregistered securities to retail investors.
Coin Cloud states on its website that it operates over 5,000 crypto ATMs that are two-way enabled in the US and Brazil. Customers can use the machines to buy and sell over 40 cryptocurrencies including bitcoin, bitcoin cash, and litecoin. They can also purchase a variety of stablecoins, gaming tokens, and decentralized finance (DeFi) tokens.
Crypto ATM monitoring website Coin ATM Radar ranks Coin Cloud with 4,826 machines as the second-largest crypto ATM operator in the world, second only to Bitcoin Depot with 6,634 machines. According to the monitoring site, there are currently 38,340 crypto ATMs at 81 locations worldwide.
Other cryptocurrency firms that filed for bankruptcy last year include FTX, Core Scientific, Celsius Network, Voyager Digital, Three Arrows Capital, and Blockfi.
Do you think other crypto ATM operators will file for bankruptcy? Let us know in the comment section.
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