Genesis-backed Coin Cloud files for bankruptcy on its ATM network
The company is the latest cryptocurrency firm to collapse.
Cryptocurrency ATM company Coin Cloud has filed for bankruptcy, according to a document submitted to Nevada’s bankruptcy court on Feb. 7.
Coin Cloud has up to 10,000 creditors, according to the filing. It also has $50 million to $100 million in assets and $100 million to $500 million in liabilities.
Notably, Coin Cloud owes up to $116 million to Genesis Global Capital, which is by far its largest creditor. All but three other creditors have claims under $1 million.
Genesis itself filed for bankruptcy for its lending division on Jan. 19. Though is unclear how that event affected Coin Cloud, a Bloomberg report from November suggested that Coin Cloud was seeking additional capital from Genesis in negotiations that may have continued until a later date — possibly until either firm’s bankruptcy filing this year.
Other reports suggest that a variety of factors were at play. The Wall Street Journal noted today that Coin Cloud’s decision to grow its ATM network was hampered by the purchase of allegedly defective ATMs. The firm is also in dispute with its former chief marketing officer, who allegedly misrepresented his credentials and overspent his budget by $20 million. The harsh crypto market seemingly affected the firm’s finances as well.
Coin Cloud apparently saw growth in recent years, as it more than tripled its revenue to $303 million between 2019 and 2021. The company saw nevertheless losses of $40 million over the first three quarters of 2022, leading to its bankruptcy filing this week.
The company says its ATM network has about 5,000 locations. It is unclear if those ATMs are currently operational or if transactions have been suspended.