One of the largest cryptocurrency ATM operators, Coin Cloud, which claims to operate more than 5,000 crypto ATMs, has filed for bankruptcy protection in the United States. The company's largest creditor is Genesis Global Trading, whose parent company also recently filed for bankruptcy protection in the United States.
Cash Cloud Inc., an operator of digital asset ATMs doing business under the name Coin Cloud, voluntarily filed for Chapter 11 bankruptcy protection on Tuesday.
In a filing with Nevada Bankruptcy Court, Coin Cloud announced that it estimates the number of creditors to be between 5,000 and 10,000. Additionally, the company estimates its total assets to be between $50 million and $100 million, while its total liabilities are between $100 million and $500 million.
Crypto lender Genesis Global Trading Inc. is listed as Coin Cloud’s largest unsecured creditor with a total claim of $116,353,435. After deducting the value of collateral, Genesis Global Trading’s unsecured claims total $108,568,655, the filing shows.
On January 19, Genesis Global Holdco LLC and its two lending subsidiaries, including Genesis Global Capital, filed for Chapter 11 bankruptcy protection in the Southern District of New York. However, the document does not include Genesis Global Trading. Genesis’ bankruptcy comes after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company, accusing the cryptocurrency lender of offering and selling unregistered securities to retail investors.
Coin Cloud claims on its website that it operates more than 5,000 two-way crypto ATMs in the United States and Brazil. The machines allow users to buy and sell more than 40 cryptocurrencies, including bitcoin, bitcoin cash, litecoin and ether. They also offer a variety of stablecoins, gaming tokens, and decentralized finance (defi) tokens.
Crypto ATM tracking site Coin ATM Radar lists Coin Cloud as the second-largest crypto ATM operator with 4,826 machines — behind only Bitcoin Depot with 6,634 machines. According to the tracking website, there are currently 38,340 cryptocurrency ATMs in 81 countries.
