Crypto ATM provider Coin Cloud has filed for chapter 11 bankruptcy.
Coin Cloud was one of the first major movers in the crypto ATM space, having been launched in 2014 by current CEO Chris McAlary. It operates primarily in the U.S. and Brazil.
According to third-party estimates, the company was the second-largest ATM provider worldwide, with about 12.6% of the total market, behind Bitcoin Depot and ahead of CoinFlip.
As per its filing with the Nevada Bankruptcy court, the company has liabilities between $100 million and $500 million, and its creditors numbered between 5,001 and 10,000.
The company’s largest named creditor is the now-defunct crypto broker Genesis, which it owes a $100 million uncollateralized loan.
Its second-largest debtor is Cole Kepro, which owes approximately $8.5 million.
Based in Nevada, Cole Kepro is a large producer of arcade gaming machines used for gambling in casinos and provided the physical equipment to power Coin Cloud’s offering.
The bankrupt firm also owed cash management and security services provider Brink’s U.S, which is known for its large armored vehicles which pick up cash, $2.5 million.
In addition to its main ATM business, Coin Cloud also operated its own non-custodial wallet service, which included integrations with its physical network, allowing users to sell their tokens for cash.
Decrypt has contacted Coin Cloud for more information about the news.
The state of crypto ATMs
Coin Cloud’s slide into bankruptcy comes as the demand for new crypto ATMs has been slowing down globally.
As per data from Coin ATM Radar, 2021 saw a huge uptick in crypto ATM adoption, moving from 14,050 in January to 34,369 in January 2022.
The past year saw much slower growth, however, with the sector adding roughly 4,000 new machines globally.
Stay on top of crypto news, get daily updates in your inbox.
Sourced from decrypt.co.
Written by Will McCurdy on 2023-02-09 12:11:39.
