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Crypto ATM operator Coin Cloud files for bankruptcy

 

American bitcoin ATM operator Coin Cloud filed a lawsuit about its own financial insolvency. In January 2022, the company was growing rapidly, but now it has more than 5,000 creditors and approximately $100 million in debt.

Coin Cloud is based in Las Vegas, Nevada, operating a network of bitcoin ATMs in the US and Brazil.

“Today we are announcing that our company has filed for Chapter 11 reorganization.. This decision will allow us to renegotiate debt, protect the interests of creditors, and become a stronger and more financially stable company,” said Chris McAlary, founder, CEO and president of Coin Cloud.

McAlary assured that Coin Cloud hopes to improve its business, still enjoys the support of the largest creditors and is “optimistic about the future of the cryptocurrency industry.”. Cash Cloud’s largest lender is Genesis Global Capital, a subsidiary of the bankrupt lending arm of Digital Currency Group.

In November, it became known that Coin Cloud received a loan of about $100 million from Genesis and was in talks with the company to seek “additional capital”. Genesis was already under financial pressure at the time and it is not clear if Coin Cloud received additional loans from the company.