Nuri, a German crypto-focused bank with 500,000 customers, filed for insolvency on Aug. 9, citing falling crypto prices, the insolvency of Celsius and other crypto funds earlier this year as reasons for measure.
The bank said the measure “will guarantee the safest road for the future” for all of its clients, but also stressed that the insolvency will not affect its services, client funds, investments or clients’ ability to withdraw their assets from the platform.
Nuri filed for insolvency on Tuesday, August 9th, 2022. This does not affect our services, customer funds or investments. You can find a complete statement of this situation on the Nuri Blog: https://t.co/UgAyckWE7J
— Nuri (@NuriBanking) August 9, 2022
Some clients have reported difficulties withdrawing their assets through the Nuri mobile application, however, the bank said on Twitter that this has been a result of high traffic and usage, and returned to emphasize that “the funds are safe”.
Notably, the company itself does not handle customers’ current and cryptocurrency funds due to a partnership with Solarisbank AG. According to the Solaris Group website, Nuri has partnered with the bank and its crypto division, Solaris Digital Assets, to outsource crypto asset and banking custody licenses.
This allowed Nuri to expand its operations and services using Solaris’ banking and crypto assets infrastructure/license. As Solaris has no cash problems, Nuri can continue to provide his services while the company restructures, unlike other companies that have had the same problems.
“Let us reiterate the most important information for you: All funds in your Nuri accounts are safe thanks to our partnership with Solarisbank AG. The temporary insolvency procedure does not affect your deposits, cryptocurrency funds and Nuri Pot investments that have been made with us”.
“You are granted access and will be able to deposit and withdraw all funds freely at any time. For the time being, nothing will change and the Nuri app, products and services will continue to work,” Nuri added.
Nuri stated that he has faced a “lasting strain” on the liquidity of his business in 2022 due to “significant macroeconomic headwinds and cooling of public and private capital markets” as well as the effects of the global pandemic and Russia’s invasion of Ukraine.
“Furthermore, several negative developments in the crypto markets earlier this year, including major crypto price drops, the implosion of the Luna/Terra protocol, the insolvency of Celsius and other well-known crypto funds have led to a bear market. of cryptocurrencies”, Nuri wrote.
The Berlin company Nuri, formerly called “bitwala”was founded in 2015 and offers cryptocurrency savings accounts, portfolio investment baskets called “Nouri Pots” and cryptocurrency trading services for which it charges 1% transaction fees.
“We are confident that the temporary insolvency procedure offers the best basis for developing a viable long-term restructuring concept in the current situation of the company,” he added.
Nuri joins a number of cryptocurrency firms that have been cash-strapped during the 2022 bear market, with the most notable names being Voyager Digital, Celsius and Three Arrows Capital.
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