Nuri. a German crypto start-up bank is filing for insolvency due to “significant macroeconomic headwinds and the cooling down of public and private capital markets.”
On August 9, Nuri, a German start-up crypto bank with 500,000 users, filed for insolvency, citing significant crypto sell-offs, Celsius and other crypto funds’ collapse earlier this year as justifications.
The cryptocurrency bank highlighted that the insolvency will not affect its services, customer cash, investments, or users’ ability to withdraw their assets from the platform, but claimed that the action will “ensure the safest way forward” for all of its customers.
Although some users of Nuri’s mobile app have reported having trouble withdrawing their payments, Nuri on Twitter said that this was due to heavy traffic and usage and emphasized once more that “funds are safe.”
Notably, a relationship with Solarisbank AG prevents the company from actually managing customer fiat and cryptocurrency funds. The Solaris Group website states that Nuri collaborated with the bank and its cryptocurrency subsidiary Solaris Digital Assets to outsource banking and custody licenses for cryptocurrencies.
Utilizing the banking and crypto asset infrastructure/licensing provided by Solaris allowed Nuri to scale its operations and services. Unlike other companies that have encountered similar problems, Solaris does not have any liquidity troubles, therefore Nuri is virtually able to continue providing its services as the company goes through restructuring.
“Let us reiterate the most important information for you: All funds in your Nuri accounts are safe due to our partnership with Solarisbank AG. The temporary insolvency proceedings do not affect your deposits, cryptocurrency funds and Nuri Pot investments which have been done with us.”
“You will always have access and be free to deposit and withdraw any amount of money at any moment. Nuri’s app, product, and services would continue to function for the time being without any changes, she noted.
According to Nuri, “major macroeconomic headwinds and the cooling down of public and private financing markets” including the global pandemic and the Russian invasion of Ukraine have put “lasting strain” on its company liquidity in 2022.
The collapse of the Luna/Terra protocol, significant cryptocurrency sell-offs earlier this year, the insolvency of Celsius, and other significant Crypto funds have all contributed to the current crypto bear market, according to Nuri.
About Nuri
The Berlin-based company formerly known as Bitwala, Nuri was established in 2015 and provides cryptocurrency trading services with a 1 percent trading fee, as well as “Nuri Pots,” or investment portfolio baskets.
In light of the company’s current circumstances, “we are confident that the interim insolvency procedures offer the best framework for establishing a sustainable long-term restructuring model,” it continued.
The most famous names include Voyager Digital, Celsius, and Three Arrows Capital. Nuri joins a large group of cryptocurrency companies that have experienced liquidity problems during the bear market of 2022.
