Chapter 11 bankrupt crypto firm scores millions in arbitration win

Core Points - Cash Cloud Inc., a bankrupt crypto company, has won an arbitration award of $18.47 million against BitAccess, a subsidiary of Bitcoin Depot Inc. [1][7] - Cash Cloud filed for Chapter 11 bankruptcy on February 7, 2023, citing debts exceeding $153.9 million due to various operational issues [2][3]. Company Overview - Cash Cloud was once a leading Bitcoin ATM operator with nearly 5,700 kiosks under the trade name Coin Cloud [2]. - Bitcoin Depot, founded in 2016, claims to have the largest market share in North America with approximately 8,800 kiosk locations [4]. Legal Dispute - The arbitration initiated by Cash Cloud in August 2022 against BitAccess was due to alleged breaches of a master purchase agreement, including the supply of faulty hardware and underperforming software [5]. - The arbitration award is a binding decision that can be enforced like a court judgment, and Bitcoin Depot has indicated plans to contest the award [7][9]. Financial Implications - The arbitration award of $18.47 million is a significant financial outcome for Cash Cloud amidst its bankruptcy proceedings [1][7]. - Cash Cloud's financial troubles were exacerbated by faulty machines, a failed software agreement, a costly hack, and alleged fraud by its chief marketing officer [3].