Crypto ATM Operator Goes Bankrupt, Owes Genesis $116 Million
The latest victim of the ongoing industry contagions is crypto ATM operator Cash Cloud.
On Feb. 7, the company, which operates under the name Coin Cloud filed for chapter 11 bankruptcy. It is the latest in a lengthening list of crypto companies to collapse in the bear market.
The filing was made in the U.S. bankruptcy court in Las Vegas. The firm stated that it hopes to secure new financing or sell the business following significant losses over the past two years.
The crypto ATM operator has assets between $50 million and $100 million. Furthermore, its liabilities are between $100 million and $500 million, and creditors number between 5,000 and 10,000.
Chapter 11 is a form of bankruptcy involving reorganizing a debtor’s business affairs, debts, and assets.
Crypto ATM Cool Down
Genesis Global Trading is the firm’s largest creditor and primary financial backer, which is owed $116.4 million.
Additionally, it owes $8.5 million to sheet metal design and fabrication company Cole Kepro and $2.5 million to security services provider Brink’s U.S. according to the filing.
According to a November Bloomberg report, Genesis had provided an unsecured loan of around $100 million to Coin Cloud. The firm also hired advisers to help rework about $125 million of the ATM operator’s debt following the FTX collapse.
According to the Coin Cloud website, the firm has over 5,000 Digital Currency Machines (crypto ATMs) across 47 states in the United States and Brazil. Its grand vision has now been put on hold, however.
“We envision a kiosk on every street corner, providing the best, most advanced and most convenient digital currency experience to everyone.”
The firm also provides a Coin Cloud Wallet for trading and storing crypto assets. According to the website, it has been downloaded 20,000 times.
Market Outlook
Crypto markets have recovered all of their losses since the FTX meltdown. However, it is too little too late for the likes of Cash Cloud.
Total market capitalization had slumped 3.8% on the day, falling to $1.09 trillion at the time of writing, according to CoinGecko.
Bitcoin and Ethereum started falling sharply during the Thursday morning Asian trading session. BTC was down 3.6% to $22,433, while ETH had dropped 4%, falling to $1,614.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
