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Top cryptocurrency news: German cryptocurrency bank Nuri files for insolvency

10-Aug-2022 By: Shikha Jha
Top cryptocurrency n

Nuri, a German start-up crypto bank with 500,000 users, filed for 

Insolvency on August 9, citing massive crypto sell-offs and the earlier insolvency of Celsius and other crypto funds as reasons for the action.

The crypto bank stated that the action will "ensure the safest route forward" for all of its users, but that the insolvency will not affect its services, user funds, investments, or customers' ability to withdraw assets from the platform.

Some users have reported difficulties withdrawing assets using Nuri's mobile application; however, Nuri stated on Twitter that this was due to high traffic and usage, and maintained that "funds are safe."

Notably, a partnership with Solarisbank AG prevents the company from actually managing customer fiat and cryptocurrency funds. According to the Solaris Group website, Nuri partnered with the bank and its cryptocurrency subsidiary, Solaris Digital Assets, to outsource banking and cryptocurrency custody licensing.

By using Solaris' banking and crypto asset infrastructure/licensing, Nuri was able to expand its operations and services. Because Solaris does not have any liquidity issues, Nuri may continue to provide services while the company is restructured, unlike other organizations that have had similar problems.

“You will have unrestricted access and will be able to deposit and withdraw funds at any time. Nothing will change for the time being, and Nuri's application, product, and services will continue to function,” according to Nuri.

Nuri claimed that substantial macroeconomic headwinds and the cooling of public and private financial markets, such as the worldwide pandemic and Russia's invasion of Ukraine, will place a "lasting pressure" on its company liquidity in 2022.

“Furthermore, several unfavorable happenings in the crypto markets earlier this year, such as massive cryptocurrency sell-offs, the implosion of the Luna/Terra protocol, and the insolvency of Celsius and other big Crypto funds, have resulted in a crypto bear market,” Nuri wrote.

Berlin-based Nuri, formerly known as Bitwala, was founded in 2015 and provides crypto savings accounts, portfolio investment baskets known as "Nuri Pots," and crypto trading services with 1% trading costs.

Nuri joins a slew of crypto businesses that have encountered liquidity challenges during the 2022 bear market, including Voyager Digital, Celsius, and Three Arrows Capital.

Read also: Top cryptocurrency news: Bitcoin.com will introduce users to decentralized financing: KBW 2022



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