• Coin Cloud, one of the U.S. and Brazil’s biggest Bitcoin ATM operators, filed for Chapter 11 Bankruptcy on Thursday, January 8 due to a severe blow from the crypto winter and the FTX implosion.
• The firm has nearly $500 million in liabilities, with its chief cause being its exposure to FTX through Genesis Global Trading.
• Coin Cloud operates over 5,000 automated teller machines in U.S. and Brazil and supports over 40 cryptocurrencies such as Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, Ethereum etc.
Coin Cloud Files for Bankruptcy
One of the U.S. and Brazil’s biggest Bitcoin ATM operators, Coin Cloud, filed for Chapter 11 Bankruptcy on Thursday, January 8 after receiving a severe blow from the crypto winter and the FTX implosion which left it with millions of dollars in liabilities.
Liabilities
Coin Cloud owes about 10,000 creditors but has between $50 million and $100 million in assets far below its debts. This imbalance in assets and liabilities has led the firm to take up this bankruptcy option as at press time it has nearly $500 million in liabilities with its chief cause being its exposure to FTX through Genesis Global Trading.
Coin Cloud’s Business Boom
The firm was doing well as one of the largest digital currencies machine operators in the U.S., with over 1100 Bitcoin ATMs worldwide until COVID pandemic when demand for Bitcoin ATMs increased beyond expectation leading them to expand their operations to top U.S retail outlets.
Bear Cycle Affects Business
During 2022 bear cycle however crypto market suffered a major downturn bringing down crypto asset prices including that of bitcoin by 70% leading people to spend less bitcoin during bear market adversely impacting firms business leaving it no option but to surrender thus filing bankruptcy due to low revenue yield during downturn period caused by FTX implosion sending ripples of contagion across crypto industry severely affecting Coin Clouds major creditor Genesis Global too .
Cryptocurrencies Supported
Coin Clouds Statistics show that it operates over 5,000 automated teller machines in U.S and Brazil supporting over 40 cryptocurrencies such as Bitcoin , Litecoin , Dogecoin ,Bitcoin Cash ,Ethereum etc .