Coin Cloud boasts more than 5,000 ATMs that support over 40 different cryptocurrencies.
The firm has between 5,001 and 10,000 creditors, and liabilities between $100M and $500M.
Coin Cloud digital money ATMs in the US and Brazil, has filed for Chapter 11 bankruptcy in the US Bankruptcy Court in the District of Nevada. On its website, Coin Cloud boasts of having more than 5,000 ATMs that support more than 40 different cryptocurrencies.
When Coin Cloud had 4,826 ATMs, virtually all of them were situated in the United States, making it the second-largest crypto ATM network in the world. The crypto sector had a pretty rough year in 2022 with bears dominating the market and catastrophic events hitting hard. The latest one is the FTX collapse.
Coin Cloud founder, CEO, and President Chris McAlary stated:
“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.”
Fallout Despite Funding
The firm has between 5,001 and 10,000 creditors, liabilities between $100 million and $500 million, and assets between $50 million and $100 million, according to a filing from February 7.
Genesis Global Capital, a division of defunct lender Digital Currency Group, is Cash Cloud’s largest creditor. Moreover, its claim against Genesis is worth about $108 million, making it the company’s biggest unsecured creditor by a wide margin.
Bloomberg reported on November 22 citing anonymous sources that Coin Cloud had gotten an unsecured loan of roughly $100 million from Genesis and was in negotiations with it seeking more cash to assist it to restructure a debt of around $125 million. Furthermore, since Genesis was already struggling financially, it is unclear whether it extended Coin Cloud any lines of credit.