Cash Cloud Bankruptcy
Cash Cloud is a Digital Currency Machine (“DCM”) company formed in 2014 and based in Nevada.
What Happened?
Cash Cloud’s business centers on its 4,800 DCMs, which are kiosks resembling ATM machines that Cash Cloud installs in various grocery stores and malls across the country and abroad. Consumers use DCMs to purchase or sell over thirty cryptocurrencies, including Bitcoin. According to Cash Cloud, a leading factor in the company’s filing for chapter 11 was its recent $35 million purchase of defective DCMs and the expense of ensuing litigation. Cash Cloud is also involved in several unrelated lawsuits in connection with certain software difficulties that affected the capabilities of the DCMs and fraud by the company’s former Chief Marketing Officer. Notably, bankrupt crypto company Genesis is Cash Cloud’s largest unsecured creditor with a $108.6 million claim based on an unsecured line of credit Genesis provided to Cash Cloud in 2020.