Cryptocurrency exchange Nuri has filed for insolvency, reportedly becoming Germany’s first fintech to take the step in a challenging year for startups in the industry. Customer access to the platform’s services and their funds will not be affected, the company assured.
Crypto Exchange Cites ‘Lasting Strain on Liquidity’ as Reason for Insolvency Filing
The Berlin-based cryptocurrency exchange Nuri (formerly Bitwala) has filed bankruptcy papers with the German capital. After unsuccessful efforts to obtain a new funding round, the company filed for bankruptcy on Tuesday, August 9. Handelsblatt, a German newspaper, reported that Nuri was the first German fintech filing for insolvency because of the recent crypto market crash.
In a statement, the exchange remarked that 2022 has been a challenging year for startups, especially those working with financial technologies, due to the effects of the Covid-19 pandemic, political uncertainties and most recently, Russia’s military invasion of Ukraine.
Nuri explained that there have been negative developments in crypto, such as major sell-offs and implosions of Terra/Luna protocols, along with the collapse of Celsius and other crypto fund, which has led to a bearish market.
The filling was completed in time so that there would not be any lasting stress on liquidity.
Nuri clients are allowed to deposit or withdraw with no restrictions
The coin trading platform insisted that the filing will not affect its products and services, clients’ funds or investments. Thanks to the partnership with Solarisbank, customers will have access to all their funds and can withdraw or deposit any money at any time. Both cryptocurrency deposits and euros are covered.
Also, the crypto exchange stated it was confident that the temporary bankruptcy proceedings provide an opportunity to develop and implement a long term restructuring plan. Nuri was founded in 2015. The exchange operated for several years under the brand Bitwala until its rebranding in 2020.
“This step became necessary to ensure the safest path forward for all our customers,” the company reiterated, and promised its team will do everything possible to ensure that its products and services continue to serve present and future customers.
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