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Bitcoin ATM Operator Coin Cloud Files for Bankruptcy With Liabilities of $100M-$500M
Coin Cloud was provided an unsecured loan of $100 million from Genesis Global Capital.
Updated May 9, 2023, 4:07 a.m. Published Feb 8, 2023, 4:39 p.m.
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CORRECTION (Feb. 9, 20:16 UTC): Corrects sub-head and the story throughout, to clarify that Genesis Global Capital is the top creditor. An earlier version of the story had Genesis Global Trading as the top creditor, which was incorrectly included by Coin Cloud in its initial filing.
Coin Cloud, which operates more than 4,000 bitcoin ATMs across the U.S. and Brazil, has filed for bankruptcy protection with estimated liabilities of between $100 million and $500 million.
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The Las Vegas-based firm has assets of between $50 million and $100 million and as many as 10,000 creditors, according to a filing in the U.S. Bankruptcy Court for the District of Nevada dated Feb. 7.
The company's largest unsecured creditor is Genesis Global Capital, which lent just over $100 million to Coin Cloud last year, according to a separate filing. Genesis is a subsidiary of Digital Currency Group, which is also the parent company of CoinDesk.
Genesis also discussed injecting equity into the ATM operator, Bloomberg reported in November.
Coin Cloud hired legendary filmmaker Spike Lee to direct a commercial for it in 2021.
Read more: Bankrupt Lender Genesis and Parent DCG Reach Initial Agreement With Main Creditors: Source
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