Crypto ATM operator Coin Cloud became the latest victim of ongoing crypto industry contagions.
Cash Cloud is a popular Crypto ATM operator company, which provides services under the name “Coin Cloud”. This is an American company, which was founded by Chris McAlary around 9 years ago. Chris McAlary was a gambling lover but after the shutdown of several major online poker sites in 2011, he shifted his interest to Crypto trading & mining activities.
On 7 Feb 2023, Coin Cloud filed for bankruptcy under the chapter 11 code in a bankruptcy court in Las Vegas. The company stated that its team is expecting to get financial support or sell the business because the company faced significant losses in the last two years continuously.
To this date, the company is holding assets in value between $50 million to $100 million. And the company is currently under liabilities between $100 million and $500 million. The number of creditors could be between 5k to 10k.
Genesis Global Trading is one of the biggest financial backers of this company and now Genesis is one of the biggest creditors of this bankrupt company, which is owed $116.4 million.
In Nov 2022, Bloomberg reported that Genesis had provided a $100 million loan to Coin Cloud, which was reportedly unsecured. At that time, the company hired some experts & advisors to raise more funds for the company to fight against its bad financial position.
Bankruptcy of Genesis Trading
Genesis Trading was a popular Crypto lending platform but due to its exposure to the FTX exchange, the company got into a bad financial situation. On 20 Jan 2023, Genesis filed for bankruptcy under the chapter 11 code.