Nuri, a crypto startup bank based in Germany, has filed for bankruptcy. The firm had around 500,000 customers before this filing. It attributed the decision to the crypto bear market and the liquidity issues other crypto companies such as Celsius faced.
Nuri crypto bank files for bankruptcy
In the official statement, Nuri said that the move to file for bankruptcy would help the crypto bank to realize the best way forward for all its customers. It also added that the bankruptcy filing would not affect its services, customer funds, investments, or the ability of its customers to withdraw crypto assets from the firm.
Some users of the bank have revealed they face challenges withdrawing their assets via the Nuri mobile app. However, Nuri responded to these allegations on Twitter, saying that the issue was caused by high traffic, stressing that funds were safe.
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The bank is not in charge of customer fiat and cryptocurrencies following a partnership with Solarisbank AG. The website of the Solaris Group shows Nuri’s partnership with the bank. The partnership was also with Solaris Digital Assets for a banking and crypto custody license.
The partnership deal allowed Nuri to scale its operations and services through the Solaris banking, crypto infrastructure and licensing. Solaris is not facing a liquidity crunch, allowing Nuri to continue normal operations as it undergoes a restructuring. Nuri assured its customers that its app, products, and services would continue running normally.
Bankruptcy filing caused by market conditions
The bank said it faced an issue with its business liquidity in 2022 following an influx of negative macroeconomic factors, including the COVID-19 pandemic and the Russian invasion of Ukraine.
It added that the hostile climate in the crypto sector since the beginning of the year had strained its operations. The massive sell-offs across the sector, the collapse of the Terra Luna blockchain, and the insolvency of Celsius alongside other leading crypto funds caused the crypto bear market.
Nuri is a crypto firm based in Germany. Nuri was founded in 2015, and it was previously known as Bitwala. The company offers services such as crypto savings accounts, crypto trading, and portfolio investment products known as Nuri Pots.
The company plans to use the bankruptcy filing to formulate a long-term restructuring plan. Nuri will join the long list of crypto companies facing liquidity issues amid the ongoing bear market. Other firms that have also filed for bankruptcy include Voyager Digital, Celsius, and Three Arrows Capital.
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