Genesis-backed Coin Cloud files for bankruptcy on its ATM network
Crypto ATM company Coin Cloud has filed for bankruptcy, according to documents filed in Nevada bankruptcy court. February 7.
According to filings, Coin Cloud has up to 10,000 creditors. It also has assets of $50 million to $100 million and liabilities of $100 million to $500 million.
Notably, Coin Cloud owes up to $116 million to Genesis Global Capital, by far its largest creditor. All but three of her other creditors have claims under $1 million.
Genesis itself filed for bankruptcy of its lending division on January 19.It’s unclear how that event affected CoinCloud, but Bloomberg reported in November that Proposed Coin Cloud had asked Genesis for additional capital, but negotiations could continue until a later date, possibly until one of the companies filed for bankruptcy this year.
Other reports suggest that various factors are at work.wall street journal noticed today Coin Cloud’s decision to expand its ATM network was hampered by the purchase of allegedly flawed ATMs. I am fighting with those responsible. The tough cryptocurrency market seems to have affected the company’s finances as well.
Coin Cloud has clearly grown over the last few years, with revenue more than tripling to $303 million between 2019 and 2021. Nonetheless, the company suffered his $40 million loss in his first three quarters of 2022, leading to a bankruptcy filing this week.
The company says it has about 5,000 locations in its ATM network. It is unclear if these ATMs are currently operational or have ceased trading.
A file about the bankruptcy of CoinCloud’s ATM network, backed by Genesis, first appeared on CryptoSlate.