Coin Cloud (Cash Cloud Inc.), a major operator of cryptocurrency ATMs, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Nevada. According to the filing, the company operates more than 5,000 two-way crypto ATMs across the United States and Brazil, supporting over 40 digital assets for purchase and sale.
Bankruptcy Details and Creditors
The bankruptcy petition lists an estimated 5,000 to 10,000 creditors, with total assets ranging between $50 million and $100 million, and total liabilities between $100 million and $500 million. 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, the unsecured claim amounts to approximately $108.57 million.
Notably, Genesis Global Holdco LLC and two of its lending subsidiaries, including Genesis Global Capital, filed for Chapter 11 bankruptcy in the Southern District of New York on January 19, 2023. However, that filing did not include Genesis Global Trading. Prior to this, the U.S. Securities and Exchange Commission (SEC) had sued Genesis, alleging it offered and sold unregistered securities to retail investors.
Industry Context and Ripple Effects
Coin Cloud’s bankruptcy is not an isolated incident. Since 2022, several major crypto firms have collapsed, including FTX, Core Scientific, Celsius Network, Voyager Digital, Three Arrows Capital, and BlockFi. These bankruptcies underscore the systemic fragility of the digital asset industry amid liquidity crises, regulatory pressures, and credit risks.
According to crypto ATM tracking site Coin ATM Radar, Coin Cloud is currently the second-largest crypto ATM operator globally with 4,826 machines, behind Bitcoin Depot which operates 6,634 machines. Worldwide, there are approximately 38,340 crypto ATMs spread across 81 countries.
Coin Cloud’s Operations and Future
Coin Cloud claims to operate more than 5,000 two-way crypto ATMs enabling users to buy and sell over 40 cryptocurrencies, including bitcoin, bitcoin cash, litecoin, ether, as well as various stablecoins, gaming tokens, and DeFi coins. With the commencement of bankruptcy proceedings, attention now turns to asset liquidation or reorganization, and the safety of customer funds.
The case may further dampen confidence in the crypto ATM industry, especially as regulatory scrutiny intensifies and market consolidation accelerates. Analysts predict that smaller operators could face similar financial stress in the coming months.