According to a petition presented on February 7, cryptocurrency ATM provider Coin Cloud has filed for bankruptcy.
The lawsuit states that there may be 10,000 creditors for Coin Cloud. Additionally, it has liabilities between $100 million and $500 million and assets between $50 million and $100 million.
Notably, Genesis Global Capital, Coin Cloud’s single-largest creditor, is owed up to $116 million. The claims of every other creditor, save three, are below $1 million.
On January 19, Genesis itself declared bankruptcy for its lending segment. It’s unclear how that incident affected Coin Cloud, but a Bloomberg report from November stated that Coin Cloud was attempting to get more money from Genesis in talks that might have gone on for a while—possibly until either company filed for bankruptcy this year.
According to some accounts, a number of reasons may have been involved. The Wall Street Journal reported today that the acquisition of reportedly flawed ATMs hindered Coin Cloud’s plan to expand its ATM network.
The business is also at odds with its former chief marketing officer, who is accused of lying about his qualifications and exceeding his spending limit by $20 million.
The firm’s finances appeared to have been impacted by the challenging crypto market. It appears like Coin Cloud has been expanding as it increased its income by more than three times to $303 million between 2019 and 2021.
Despite this, the company lost $40 million throughout the first three quarters of 2022, which is what prompted this week’s bankruptcy filing. The corporation estimates that there are around 5,000 locations in its ATM network. It is unknown if the transactions at such ATMs have been stopped or are still active.
