Nuri, a cryptocurrency-intent digital banking platform, announced on Tuesday that it had filed for bankruptcy in Germany, citing the prolonged crypto winter. The company has assured customers that their access to the platform’s services and funds are unaffected.
Another victim of the 2022 bear market has been identified. On August 9, the German crypto exchange Nuri was listed for insolvency in a Berlin court, specifying the crypto market’s extended bearish cycle since the start of the year, and claiming that the move was essential in ensuring the safest path forward for all our customers.
Reuters reports that, unlike other cryptocurrency firms that have declared insolvency this year, Nuri has not suspended customer withdrawals to their euro accounts and crypto wallets. Users can still move their funds. Following failed attempts to get new funding round, the company was compelled to make this decision.
In a statement, the company stated: Because of our partnership with Solarisbank AG, all funds in your Nuri accounts are secure. The temporary insolvency proceedings have no bearing on your deposits, cryptocurrency funds, or Nuri Pot investments with us.
Nuri, previously known as Bitwala, has been in business since 2015, providing users with the convenience of a traditional bank account as well as Bitcoin and Ethereum wallets. The platform also provides savings plans through recurring Bitcoin purchases, as well as its recently introduced Nuri Pots, a collection of various exchange-traded funds and other investment products.
In explaining the decision to list for insolvency, Nuri stated that it will encounter a continuing strain on its business liquidity in 2022 as a result of important macroeconomic headwinds such as the COVID pandemic and Russia’s breach of Ukraine, as well as “the cooling down of public and private capital markets.”
According to the company: Furthermore, different negative outcomes in the crypto markets earlier this year, such as major cryptocurrency sell-offs, the collapse of the Luna/Terra protocol, and the insolvency of Celsius and other major Crypto funds, contributed to the formation of a crypto bear market.
The insolvency listing took place just two months after CEO Kristina Walcker-Mayer disclosed that the company was laying off 20% of its employees to move its strategic plans towards earlier profitability in order to adapt to the new financial market reality.
All Funds Are Secure
On the insolvency FAQ page, Nuri stated that it will work out the next steps in the process with the assistance of an insolvency administrator, but emphasized that all funds are secure. The company stated that assets in crypto wallets and vaults are still available for withdrawal and trading at any time, implying that it does not have entry to the coins and/or private keys in users’ vaults.
Nuri also stated that custodial wallets are managed by Solaris Digital Assets GmbH (SDA), which does not handle customers’ crypto and fiat funds. The platform’s mobile app is still available, allowing users to access their bank accounts through the app. Nuri users, on the other hand, are still unable to withdraw funds from their Bitcoin interest accounts, which were launched in collaboration with the now-obsolete cryptocurrency lending platform Celsius.
According to the platform: The withdrawal freeze in Celsius remains unaffected, and the withdrawal function is idle.
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