Briefly
- Bitcoin Depot’s Canadian subsidiary, BitAccess, was hit with an $18.47 million arbitration award after Money Cloud accused it of crippling {hardware} and software program failures.
- Money Cloud can also be pursuing a parallel lawsuit in U.S. chapter court docket in search of the identical damages, arguing some claims fall exterior the Canadian tribunal’s jurisdiction.
- Bitcoin Depot says it can problem the award and “vigorously defend” each instances.
A Canadian subsidiary of Bitcoin Depot Inc. was slapped with an $18.47 million arbitration award following a protracted dispute with bankrupt crypto ATM operator Money Cloud Inc. over alleged {hardware} and software program failures that crippled hundreds of machines.
The Atlanta-based Bitcoin ATM operator disclosed in a Type 8-Ok submitting on Monday that an arbitral tribunal administered by the Canadian Arbitration Affiliation dominated in favor of Money Cloud after hearings held between December 2024 and October 2025.
An arbitration award is a legally binding determination issued by a personal arbitration panel that usually carries the identical enforcement weight as a court docket judgment.
“The award represents the complete quantity of damages discovered by the tribunal based mostly on Money Cloud’s claims asserted within the arbitration,” Bitcoin Depot stated within the submitting. “BitAccess intends to proceed to vigorously defend this matter.”
Decrypt has reached out to Bitcoin Depot for additional remark.
Deal turns bitter
Money Cloud, as soon as a prime Bitcoin ATM platform that operated beneath the commerce title Coin Cloud, was a Nevada company that owned and operated a community of roughly 5,700 kiosks earlier than submitting for chapter.
BitAccess Inc., the Bitcoin ATM operating-system vendor that Bitcoin Depot acquired a controlling stake in by means of an fairness buy settlement in 2021, capabilities as Bitcoin Depot’s software program arm.
After signing a Grasp Buy Settlement in January 2020, Money Cloud initiated arbitration in August 2022, alleging BitAccess breached the deal by delivering defective {hardware} and underperforming kiosk software program.
Money Cloud advised arbitrators the defects left massive parts of its ATM fleet inoperable, triggering outages and direct income hits.
BitAccess is in search of to have the award put aside, although Bitcoin Depot acknowledged it “can not predict with any diploma of certainty the final word final result of the matter.”
Chapter proceedings
Other than the Canadian arbitration, Bitcoin Depot faces a separate authorized risk within the U.S. Chapter Courtroom for the District of Nevada, the place Money Cloud is in search of the identical quantity in damages.
Money Cloud filed for Chapter 11 chapter in Las Vegas in February 2023, blaming greater than $153.9 million in debt on defective machines, a failed software program settlement with BitAccess, a expensive hack, and alleged fraud by its chief advertising and marketing officer.
The corporate filed the companion lawsuit in 2023, alleging that sure claims fall exterior the Canadian tribunal’s jurisdiction and claiming further by-product damages stemming from the identical contractual dispute, resting on the identical 2020 Grasp Buy Settlement.
“The corporate believes the U.S. Chapter Courtroom motion is with out benefit, intends to vigorously defend it, and that it considerably overlaps with the problems already earlier than the Canadian arbitral tribunal,” the submitting acknowledged.
Quarterly efficiency
Bitcoin Depot’s Q3 income rose 20% year-over-year to $162.5 million and web revenue jumped 139% to $5.5 million, however each dropped quarter-to-quarter, income falling about 6% from Q2’s $172.1 million and revenue sliding roughly 55% from $12.3 million.
The corporate’s Q3 earnings per share got here in at $0.08, down from $0.16 in Q2.
Bitcoin Depot operates over 9,000 Bitcoin ATMs throughout the U.S., Canada, and Australia as of September.
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