Crypto ATM operator Cash Cloud has filed for bankruptcy with at least 5,000 creditors.
The firm, which does business as Coin Cloud, has assets between $50 million and $100 million, liabilities between $100 million and $500 million, and creditors numbering between 5,000 and 10,000, according to the Tuesday (Feb. 7) filing.
The creditor with the largest claim is Genesis Global Trading, to which Cash Cloud owes $116.4 million. The next largest claims are from sheet metal design and fabrication company Cole Kepro, at $8.5 million, and security services provider Brink’s U.S., at $2.5 million, according to the filing.
Cash Cloud did not immediately reply to PYMNTS’ request for comment.
The company has more than 5,000 Coin Cloud ATMs in 47 states across the U.S. as well as Brazil, according to its website.
The firm also offers a Coin Cloud Wallet app for buying, selling, sending, receiving, storing and managing digital currencies that has been downloaded 20,000 times, per the website.
The company’s bitcoin ATMs drew customers because of the popularity of crypto and the use of digital currencies to transmit money worldwide, Coin Cloud Founder Chris McAlary told a Las Vegas news outlet in April 2021.
At the time, the firm had deployed 2,000 ATMs and was aiming to reach 10,000 by the end of 2021, according to the news report.
Three months later, in July 2021, it was reported that director and actor Spike Lee was working on a Coin Cloud commercial.
Together with crypto-only ATMs — the growth of which was reported to have slowed down in early 2022 — the industry has also seen crypto-capable ATMs offered by companies partnering with firms like MoneyGram and Coinstar.
PYMNTS research published in March 2022 found that 29% of community banks were looking at offering cryptocurrency solutions within the next year and half.
Brick-and-mortar financial institutions have been increasingly reliant on ATMs with enhanced digital capabilities to provide customers with a growing array of products and services, according to the “Digital-First Banking Tracker,” a PYMNTS and NCR collaboration.