500K user German crypto bank ‘Nuri’ files for bankruptcy

Notably, a collaboration with Solarisbank AG prevents the company from managing customers’ fiat and cryptocurrency funds directly

Nuri collaborated with the bank and its cryptocurrency subsidiary Solaris Digital Assets to outsource banking and custody licences for cryptocurrencies.
Nuri collaborated with the bank and its cryptocurrency subsidiary Solaris Digital Assets to outsource banking and custody licences for cryptocurrencies.

German startup crypto bank Nuri, which has 500,000 users, filed for insolvency on Tuesday, citing significant crypto sell-offs and earlier this year’s insolvency of Celsius and other crypto funds as justification, as reported by Cointelegraph.

The cryptocurrency bank highlighted that the insolvency will not affect its services, customer cash, investments, or customers’ ability to withdraw their assets from the platform, but claimed that the action will “ensure the safest way forward” for all of its clients. 

German startup crypto bank Nuri, which has 500,000 users, filed for insolvency on Tuesday, citing significant crypto sell-offs and the earlier this year’s insolvency of Celsius and other crypto funds as justification.

The cryptocurrency bank highlighted that the insolvency will not affect its services, customer cash, investments, or customers’ ability to withdraw their assets from the platform, but claimed that the action will “ensure the safest way forward” for all of its clients.

As reported by Cointelegraph, Some users of Nuri’s mobile app have reported having trouble withdrawing their payments; however, Nuri on Twitter claimed that this was due to heavy traffic and usage and emphasised once more that “funds are safe.”

Notably, a collaboration with Solarisbank AG prevents the company from managing customers’ fiat and cryptocurrency funds directly. The Solaris Group website states that Nuri collaborated with the bank and its cryptocurrency subsidiary Solaris Digital Assets to outsource banking and custody licences for cryptocurrencies.

According to Nuri, “major macroeconomic headwinds and the cooling down of public and private financing markets” including the COVID-19 epidemic and the Russian invasion of Ukraine have put “lasting strain” on its company liquidity in 2022.

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, Cointelegraph noted.

(With insights from Cointelegraph)

Also Read: Coinbase posts a Q2 loss of $1.10 billion due to falling exchange assets

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