Digital asset platform Nuri has told clients to withdraw their funds within the next two months, after being hit by the crypto winter. Formerly known as Bitwala, the Berlin-based cryptocurrency bank filed for insolvency earlier this year and failed to find a buyer.
Nuri will hold the trade until the last day of November and prepares to close
Crypto bank and exchange Nuri has asked users to withdraw their funds no later than December 18, 2022. The Germany-based company will then end and liquidate its digital asset business, according to a letter from its CEO Kristina Walcker-Mayer , who assured:
Customers have access and will be able to withdraw all funds up to the above date. All assets in your Nuri account are safe and unaffected by Nuri’s insolvency.
The managing director pointed out that the platform will continue to support trading until November 30, 2022. The announcement comes after Nuri filed for temporary insolvency in August. Reports at the time said it had become the first German fintech to take the plunge in a tough year for crypto startups.
Nuri was launched in 2015 and for a few years, until rebranding in 2021, operated as Bitwala. Over the years, the company has had its ups and downs, but this year’s challenges have become insurmountable.
Difficult economic and political conditions have prevented it from attracting investors and raising new funds. The insolvency of one of its major business partners has further aggravated the situation, and despite working closely with its administrators on a restructuring plan over the past three months, Nuri has been unable to find a buyer.
While many businesses operating with digital assets saw significant growth when crypto prices hit all-time highs last year, many were hit hard by the market crash of 2022 and events such as the collapse of the stablecoin terrausd (UST) in May. Finding an investor proved difficult. For example, last month online payment company Bolt canceled a deal to buy crypto provider Wyre.
Do you expect other German crypto companies to go bankrupt in the near future? Share your thoughts on the subject in the comments section below.
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