German crypto bank Nuri files for insolvency
German crypto bank Nuri files for insolvency; services and client funds reportedly unaffected.
The Germany-based fintech startup Nuri (formerly Bitwala), focused on cryptocurrencies, filed for insolvency. It served more than 500 thousand clients.
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
«Significant macroeconomic challenges and cooling capital markets have put persistent liquidity stress. … The crypto winter after the Terra crash, Celsius and a number of major funds,» the company explained.
The management said that the restructuring will not affect the services offered, client funds, investments, or the ability to withdraw assets.
Nuri offered digital assets in partnership with Solarisbank. It outsourced fiat-payment processing and custody of cryptocurrencies thanks to its licenses. Thanks to the alliance, fintech-startup clients will not face problems typical for a number of companies like Voyager Digital.
«The temporary insolvency procedure does not affect deposits, crypto funds and Nuri Pot products,» the statement said.
Difficulties some users experienced withdrawing funds were attributed to high traffic. Client funds are safe, Nuri assured.
We are currently experiencing high traffic and usage, leading to slower performance in our mobile app. Our team is working hard to improve performance. Please note that funds are safe and you can try to use the app at a later point of time 🙏🏻
— Nuri (@NuriBanking) August 9, 2022
In July, the Thai bitcoin exchange Zipmex обратилась for protection from creditors in court.
Earlier, Kaiko analysts predicted the bankruptcy of some crypto exchanges due to adverse market conditions, shrinking client activity and problems affecting several players in the industry.
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