- Crypto ATM operator Coin Cloud filed for bankruptcy following substantial losses.
- The firm wants to secure new funding or sell the business.
- Genesis Global Trading is the largest creditor, with an unsecured claim of over $108 million.
Coin Cloud, a crypto ATM operator, filed for chapter 11 bankruptcy on February 7. The filing was made with the Las Vegas bankruptcy court in the United States. Following substantial losses over the past two years, the company announced its intention to secure new funding or sell the business. It joins a growing list of crypto firms that have collapsed during the ongoing market downturn.
The founder and CEO of Coin Cloud, Chris McAlary, said in a statement.
We are announcing today that our company has filed for Chapter 11 reorganization. This decision will allow us to rework our debt, protect the interests of our creditors, and emerge as a stronger, more financially stable company.
According to the filing, the company has between $50 million to $100 million in assets, $100 million to $500 million in liabilities, and between 5,000 and 10,000 creditors. In terms of claims, Genesis Global Trading is the biggest creditor, per the filing.
Coin Cloud reportedly acquired an unsecured loan of roughly $100 million from Genesis. It was also in talks with them at the time, seeking ‘additional capital’ to help restructure a debt of around $125 million.
The company now has an unsecured claim from Genesis for over $108 million, greatly outstripping the next highest claimant, sheet metal design and fabrication company, Cole Kepro, who is due over $8 million.
Contextually, Coin Cloud’s official website states that the firm has over 5,000 Coin Cloud ATMs installed in 47 different states in the US and Brazil. The ATMs support the buying and selling of Bitcoin, Ethereum, Dogecoin, Shiba Inu, and 40 other cryptocurrencies with cash or card.
According to the website, the company also provides a Coin Cloud Wallet app for buying, trading, sending, receiving, storing, and managing digital currencies, which has been downloaded around 20,000 times.
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