Plan to Launch 1,000 US Bitcoin ATMs Collapses Amid Alleged Misconduct

A previously announced business partnership between BitXatm and CryptVision that would have resulted in the launch of 1,000 bitcoin ATMs in the US has been dissolved.

First revealed on 20th July, the deal made CryptVision the exclusive provider of BitXatm bitcoin ATMs in the US and Canada. At the time, Los Angeles-based CryptVision aimed to establish itself as one of the more prominent bitcoin ATM operators in North America, while Germany-based BitXatm aimed to further its presence outside of Europe.

The news was first detailed in an 8th September blog post published by BitXatm that announced it would withdraw from the partnership, effective immediately, alleging that CryptVision "never conducted any organized effort to secure new customers as stipulated by the agreement".

BitXatm wrote:

"Refusal of CryptVision’s management to act in good faith and respect legal obligations arising from our partnership agreement left BitXatm with no choice but to terminate the collaboration and remove any right of representation from CryptVision."

Speaking to CoinDesk, CryptVision president Sergey Yesayan was equally critical of the actions of his company's former partner.

"We have been deeply disappointed with BitX[atm]’s behavior and its demonstrated unwillingness to deal ethically with CryptVision," he said.

CryptVision confirmed that it is still seeking to launch a fleet of bitcoin ATMs in North America, while BitXatm has pledged to announce further expansion plans in what it has called a key international market.

Moving past the partnership

Representatives from both parties suggested that, while the split was not amicable, neither intends to pursue legal action.

Catalin Tincu, co-founder of BitXatm, told CoinDesk:

"Our intention is to put behind this unfortunate event, to take care of our customers and prospects in US. We are not here to tarnish CryptVision reputation, we just present 'the ugly truth' and is not our fault that CryptVision put themselves in such position."

Tincu went on to claim that while it has "strong evidence of [CryptVision's] lack of honesty and business ethics", it is not willing to make the information public at this time. BitXatm has asked potential business partners that may have been in touch with CryptVision to contact it directly.

CryptVision is represented by Pillsbury Winthrop Shaw Pittman attorney Marco Santori, who recently joined Blockchain as its global policy council. Santori declined to comment on the partnership or BitXatm's statements, but indicated CryptVision is excited to move on to upcoming business.

Announcements upcoming

Both companies indicated their willingness to move on with their larger plans, albeit independently.

For its part, Yesayan indicated that CryptVision intends to rebrand its company; that it is considering building its own proprietary bitcoin ATMs and expects to have forthcoming announcements. Yesayan claimed the rebranding was necessary, citing a dissatisfaction with how the name may reflect its larger goals. CryptVision's former website is no longer active.

In turn, Tincu told CoinDesk that he is optimistic that BitXatm will be able to move forward with its formal plans for entering the US market, adding:

"We were contacted by few companies from US interested in taking over what supposed to be CryptVision's part in this partnership, and is very possible for us to conclude this new partnership in upcoming weeks."

Divorce agreement image via Shutterstock