Due to the ongoing crypto bear market, many businesses have been struggling. Some of these companies could not maintain their activities due to financial crises.
Nuri, a Germany-based cryptocurrency bank, has announced its intention to stop its trading activities. This decision is due to the extreme market conditions and bad macroeconomic situations troubling the crypto market.
The Bank revealed the information through its CEO, stating that customers can withdraw their funds until December 18. In the meantime, the exchanges will continue until November 30.
The bear market does not smile: Nuri fails to access investors
The effects of extreme market conditions have hit Nuri hard, limiting its financial strength in recent months. As a result, having failed to solicit funding from venture capitalists and companies that might acquire it, Nuri decided to close up shop. In August, Nuri filed for insolvency, declaring its inability to fund its operations.
In the recent announcement, Kristina Walcker-Mayer, CEO of Nuri, commented on the company’s predicament. Kristina said the current situation is so overwhelming that the company has been unable to find investors. Therefore, the company decided to liquidate its assets and asked customers to withdraw their funds by December 18.
The CEO assured that clients’ assets remain safe and that Nuri’s insolvency does not affect them. However, crypto trading on Nuri’s platform will no longer continue after November 30.
Despite the challenges that have plagued the company, it remains supportive of cryptocurrencies and blockchain technology. Walter-Mayer said blockchain innovations would provide endless opportunities and add value to people’s lives.
Crypto Winter and the Companies Affected
Terra crashed in May, and its native token LUNA and stablecoin UST crashed with it, causing investors to lose hundreds of millions of dollars.
The collapse of Terra caused a cascade of losses in the crypto industry. This includes the pack-up of crypto brokerage company Voyager Digital and the bankruptcy of Three Arrows Capital. In June, a court in the British Virgin Islands allowed Three Arrows’ liquidators to seize the company’s assets.
A few weeks after the Three Arrows issue, Voyager Digital stopped all trading, deposits and withdrawals on its platform. Company CEO Stephen Ehrlich said the decision was difficult but appropriate given current market conditions.
Celsius Network was also among the companies affected by Terra Collapse. As a result, the company suspended withdrawals, transfers and trades on its platform and subsequently filed for Chapter 11 bankruptcy. the bankruptcy court for the Southern District of New York.
Meanwhile, Terra co-founder Do Kwon remains at large as South Korean authorities continue their search with evidence awaiting his arrest. South Korean prosecutors charged Do Kwon with violating market laws.
Featured image from Pixabay, chart from TradingView.com