Bitcoin Depot Contests $18.5M Award as Subsidiary Faces Twin Authorized Battles – Decrypt

In short
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 courtroom looking for the identical damages, arguing some claims fall outdoors the Canadian tribunal’s jurisdiction.
Bitcoin Depot says it can problem the award and “vigorously defend” each circumstances.
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 1000's of machines.The Atlanta-based Bitcoin ATM operator disclosed in a Kind 8-Okay 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 resolution issued by a non-public arbitration panel that usually carries the identical enforcement weight as a courtroom judgment.”The award represents the complete quantity of damages discovered by the tribunal primarily based on Money Cloud's claims asserted within the arbitration,” Bitcoin Depot mentioned within the submitting. “BitAccess intends to proceed to vigorously defend this matter.”Decrypt has reached out to Bitcoin Depot for additional remark.Deal turns sourCash Cloud, as soon as a high Bitcoin ATM platform that operated below the commerce identify 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 way of an fairness buy settlement in 2021, features 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 looking for to have the award put aside, although Bitcoin Depot acknowledged it “can't predict with any diploma of certainty the final word final result of the matter.”Chapter proceedingsApart from the Canadian arbitration, Bitcoin Depot faces a separate authorized menace within the U.S. Chapter Courtroom for the District of Nevada, the place Money Cloud is looking for 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 officer. The corporate filed the companion lawsuit in 2023, alleging that sure claims fall outdoors the Canadian tribunal's jurisdiction and claiming extra 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 advantage, intends to vigorously defend it, and that it considerably overlaps with the problems already earlier than the Canadian arbitral tribunal,” the submitting said.Quarterly performanceBitcoin Depot’s Q3 income rose 20% year-over-year to $162.5 million and internet earnings 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.Day by day Debrief NewsletterStart daily with the highest information tales proper now, plus authentic options, a podcast, movies and extra.