Cash Cloud, the operator of crypto ATMs, is the latest victim of the ongoing industry contagions.
On February 7, the firm, known as Coin Cloud, filed for chapter 11 bankruptcy. It is the latest in a long line of cryptocurrency startups to fail during the bear market.
The petition was filed in the United States Bankruptcy Court in Las Vegas. Following considerable losses over the last two years, the company announced that it expects to seek new finance or sell the business.
The crypto ATM operator’s holdings range between $50 and $100 million. Furthermore, its liabilities range from $100 million to $500 million, and its creditors range from 5,000 to 10,000.
Chapter 11 is a type of bankruptcy in which the debtor’s business activities, obligations, and assets are reorganized.
The firm’s main creditor and key financial supporter, Genesis Global Trading, is due $116.4 million.
According to the lawsuit, it also owes $8.5 million to sheet metal design and fabrication business Cole Kepro and $2.5 million to security services provider Brink’s U.S.
According to a November Bloomberg story, Genesis gave Coin Cloud with an unsecured loan of around $100 million. Following the FTX collapse, the corporation also sought consultants to assist with reworking around $125 million of the ATM operator’s debt.
The Coin Cloud website claims that the company has over 5,000 Digital Currency Machines (crypto ATMs) spread throughout 47 states in the United States and Brazil. However, its great ambition has now been placed on hold.
“We envisage a kiosk on every street corner that provides everyone with the finest, most sophisticated, and most convenient digital money experience.”
The company also offers a Coin Cloud Wallet for trading and keeping cryptocurrency assets. It has been downloaded 20,000 times, according to the website.
Since the FTX crash, crypto markets have regained all of their losses. However, for the likes of Cash Cloud, it is too little, too late.
According to CoinGecko, total market capitalization has dropped 3.8% on the day, reaching $1.09 trillion at the time of writing.
During the Thursday AM Asian trading session, Bitcoin and Ethereum began to tumble precipitously. BTC was down 3.6% to $22,433, while ETH was down 4% to $1,614.
