In short
- Bitcoin Depot’s Canadian subsidiary BitAccess was hit with an $18.47 million arbitration award after Cash Cloud accused it of crippling hardware and software flaws.
- Cash Cloud is also filing a parallel lawsuit in U.S. bankruptcy court seeking the same damages, arguing that some claims fall outside the Canadian tribunal’s jurisdiction.
- Bitcoin Depot says it will appeal the ruling and “vigorously defend” both cases.
A Canadian subsidiary of Bitcoin Depot Inc. was awarded an arbitration award of $18.47 million after a lengthy dispute with bankrupt crypto ATM operator Cash Cloud Inc. about alleged hardware and software errors that crippled thousands of machines.
The Atlanta-based Bitcoin ATM operator mentioned in a Form 8-K filing on Monday, an arbitral tribunal administered by the Canadian Arbitration Association ruled in Cash Cloud’s favor after hearings between December 2024 and October 2025.
An arbitration award is a legally binding decision issued by a private arbitration panel and generally carries the same enforcement weight as a court decision.
“The award represents the full amount of damages determined by the tribunal based on Cash Cloud’s claims asserted in the arbitration,” Bitcoin Depot said in the filing. “BitAccess intends to continue to vigorously defend this case.”
Declutter has contacted Bitcoin Depot for further comment.
Deal turns sour
Cash Cloud, once a top Bitcoin ATM platform operating under the trading name Coin Cloud, was a Nevada company that owned and operated a network of approximately 5,700 kiosks before filing for bankruptcy.
BitAccess Inc., the provider of the Bitcoin ATM operating system under Bitcoin Depot acquired a controlling interest through a stock purchase agreement in 2021, serves as the software arm of Bitcoin Depot.
After signature a Master Purchase Agreement in January 2020, Cash Cloud initiated arbitration in August 2022, claiming BitAccess breached the deal by supplying defective hardware and underperforming kiosk software.
Cash Cloud told the arbitrators that the defects rendered large parts of the ATMs unusable, leading to outages and direct revenue losses.
BitAccess is seeking to set aside the award, although Bitcoin Depot acknowledged that it “cannot predict the ultimate outcome of the case with any degree of certainty.”
Bankruptcy proceedings
Aside from the Canadian arbitration, Bitcoin Depot faces a separate case legal threat in the U.S. Bankruptcy Court for the District of Nevada, where Cash Cloud is seeking the same amount of damages.
Cash cloud requested Chapter 11 bankruptcy in Las Vegas in February 2023, blaming more than $153.9 million in debt on faulty machines, a failed software deal with BitAccess, a costly hack and alleged fraud by the Chief Marketing Officer.
The company filed the companion lawsuit in 2023, alleging that certain claims were outside the jurisdiction of the Canadian tribunal and claiming additional derivative damages arising from the same contractual dispute, which relied on the same 2020 Master Purchase Agreement.
“The company believes that the U.S. Bankruptcy Court’s action is without merit, intends to vigorously defend it and that it substantially overlaps with the issues already before the Canadian Arbitral Tribunal,” the filing said.
Quarterly performance
Bitcoin depots Third quarter turnover rose 20% year-over-year to $162.5 million and net profit rose 139% to $5.5 million, but both declined quarter-over-quarter. fall over 6% from $172.1 million in the second quarter and profits fell about 55% from $12.3 million.
The company’s third-quarter earnings per share were $0.08, compared to $0.16 in the second quarter.
Bitcoin Depot is active more than 9,000 Bitcoin ATMs in the US, Canada and Australia from September.
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