a bitcoin ATM company Coin Cloudactive in Brazil and in several countries, filed for bankruptcy last week in a court in Nevada in the United States.
With the request, yet another company active in the cryptocurrency market shows that it is in trouble.
That is because when a company in the United States files for bankruptcy, it asks for protection from the courts to reorganize its finances or close the company in an orderly manner.
What does the US bankruptcy filing for Coin Cloud say? Second largest bitcoin ATM company in the world
Coin Cloud CEO Christopher Andrew McAlary is responsible for filing for bankruptcy, according to “chapter 11” in the US.
According to the request, it indicates that the company founded in 2014 has been active in recent years selling bitcoin and other cryptocurrencies in the market.
Andrew stated that as of December 31, 2022, “the company operated approximately 4,800 DCMs in the United States and Brazil, installed in some of the largest chains of convenience stores, supermarkets and beverage stores and prestigious shopping centers“.
Following bankruptcy, Coin Cloud will have its case reviewed by a US federal judge, which must monitor the company’s financial projections as well as its history in the market.
One of the latest installations in Brazil took place in Carrefour stores, in October 2022, in four states.
The company backed the recent cryptocurrency bill in Brazil
Following the passage of Brazil’s cryptocurrency law, Coin Cloud’s compliance manager showed support for the text to be sanctioned at the end of December 2022. In a note to Livecoins at the time, Camilla Rocha said the new legislation put the country at the forefront of the market.
“Now that the topic has been well discussed, Brazil could be one of the first to include cryptoeconomics in its regulations. In general, the text is very positive in terms of investor safety and company credibility in the market in general, this will be the best way to separate “the wheat from the chaff” in the crypto market and the best investment opportunities in the market, will be a way to educate the Brazilian consumer, who is increasingly clinging to this universe.”
In Brazil, the company has not yet filed for bankruptcy and plans to continue operations.
What is a Bitcoin ATM?
A Bitcoin ATM is an automatic machine model that allows the purchase and sale of Bitcoins with fiat money. Bitcoin ATMs work similarly to conventional ATMs, but instead of dispensing cash, they offer bitcoins.
To use a Bitcoin ATM, customers must create a Bitcoin wallet, where Bitcoins are sent.
Then simply insert fiat money into the machine, choose the bitcoin purchase option and follow the on-screen instructions. Some machines require an ID card or just a QR code from your bitcoin wallet.
In general, it is important to exercise caution when using a Bitcoin ATM, just as it is important to exercise caution when using any other financial device. For example, using a private address, knowing the location of the devices and checking the condition of the equipment are among the measures that strengthen the security of service users.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
