Chapter 11 bankrupt crypto firm scores millions in arbitration win

Cash Cloud Inc., a bankrupt crypto company, has won $18.47 cardinal successful an arbitration award. This follows a long-running ineligible quality with BitAccess, a Canadian subsidiary of Bitcoin Depot Inc.

Both Cash Cloud and Bitcoin Depot are well-known for operating Bitcoin (BTC) ATMs. A Bitcoin ATM is simply a kiosk that allows an idiosyncratic to acquisition BTC and different cryptocurrencies with currency oregon a debit card.

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Cash Cloud was erstwhile a ascendant Bitcoin ATM institution with nearly 5,700 kiosks that ran operations nether the commercialized sanction Coin Cloud. However, the Nevada-based company filed for Chapter 11 bankruptcy in Las Vegas connected Feb. 7, 2023.

The institution claimed that it ran into a indebtedness of much than $153.9 million, owing to faulty machines, a failed bundle statement with BitAccess, a costly hack, and alleged fraud by its main selling officer.

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Founded successful 2016, Bitcoin Depot is simply a Bitcoin ATM institution that claims to person the largest marketplace stock successful North America with astir 8,800 kiosk locations.

Though Bitcoin Depot acquired a controlling involvement in BitAccess in 2021, Cash Cloud had already signed a maestro acquisition statement with BitAccess successful January 2020.

In August 2022, Cash Cloud initiated arbitration against BitAccess successful Canada for allegedly breaching the statement by supplying faulty hardware and underperforming kiosk software.

Cash Cloud further claimed that specified faulty products triggered outages astatine its ATMs and lowered revenue.

On Nov. 24, Bitcoin Depot disclosed successful a Form 8-K filing that the arbitral tribunal precocious awarded $18.47 million in favour of Cash Cloud pursuing hearings held during December 2024-October 2025.

An arbitration grant is simply a binding determination from a backstage arbitrator, and it tin beryllium enforced conscionable similar a tribunal judgment.

BitAccess will vigorously support this matter, said Bitcoin Depot.

"BitAccess is seeking to person the grant acceptable aside, however, we cannot foretell with immoderate grade of certainty the eventual result of the matter."

Besides the lawsuit successful Canada, Cash Cloud filed different suit against Bitcoin Depot successful the U.S. Bankruptcy Court for the District of Nevada successful 2023. It claimed that certain claims owed to the alleged usurpation of the BitAccess statement autumn extracurricular the Canadian tribunal's jurisdiction.