Nuri is a fully regulated, non-custodial German service provider that follows all laws and regulations in the country. For example, your Nuri’s bank account is hosted by solarisBank, Nuri’s German partner bank, and your EUR funds (up to 100,000) are protected by the German Deposit Guarantee Scheme (DGS).
Nuri is a one-of-a-kind service that bridges the gap between traditional finance and cryptocurrencies. It is one of the first platforms to provide both banking and non-custodial crypto wallet and trading services, and it even has a debit card that can be used to spend money and crypto daily.
Nuri Files for Insolvency
Nuri, formerly Bitwala, a Berlin-based cryptocurrency exchange, has filed for bankruptcy in the German capital. The company filed for insolvency on August 9, 2022, following unsuccessful attempts to secure a new financing round, according to the business newspaper Handelsblatt, noting that Nuri is the first German fintech to file for insolvency as a result of the recent crypto market slump.
The exchange stated that 2022 had been a challenging year for startups, particularly those working in financial technologies, due to the effects of the Covid-19 pandemic, political uncertainty, and, most recently, Russia’s military invasion of Ukraine.
Furthermore, adverse developments in the crypto space, such as significant sell-offs, the implosion of the Terra/Luna protocol, and the insolvency of Celsius and other crypto funds, have resulted in a bear market, according to Nuri, who added that “we proceeded with the filling in due time to stay ahead of a lasting strain on our business’s liquidity.”
Clients of Nuri Face No Restrictions
The coin trading platform insisted that the filing would have no impact on its products and services, as well as its clients’ funds or investments. Due to a partnership with Solarisbank, customers will continue to have unrestricted access to their accounts and can deposit and withdraw funds anytime. This is true for both cryptocurrency and euro deposits.
The cryptocurrency exchange also stated that it is still confident that the temporary insolvency proceedings will provide a foundation for developing and implementing a long-term restructuring plan.
“This step became necessary to ensure the safest path forward for all of our customers,” the company reiterated, promising that its team will do everything in its power to ensure that its services and products continue to benefit future and current customers.
Clients Encouraged to Withdraw Funds
Customers have until December 18, 2022, to withdraw funds from the platform, while trading will be available until November 30. The German firm will then close and liquidate its digital asset business.
In an interview, CEO Kristina Walcker-Mayer stated that customers have access to and can withdraw all funds until the specified date. Nuri’s insolvency does not affect the assets in your Nuri account.
Regardless, according to the Bitcoineer Official website, customers should withdraw their funds to avoid any negative consequences resulting from insolvency.
Although many companies dealing in digital assets experienced significant growth when crypto prices reached all-time highs in 2021, many were hard hit by the market slump in 2022 and events such as the May collapse of the terrausd (UST) stablecoin. Finding an investor has proven challenging. For example, online payments firm Bolt canceled a deal to acquire cryptocurrency provider Wyre last month. As investors in cryptocurrency, the best thing you can do is research your investments and withdraw from companies on the brink of insolvency to avoid significant losses.