German Crypto Bank Nuri Files For Insolvency, Says “All Funds Are Safe”

Nuri, a crypto-focused digital banking platform, announced on Tuesday that it had filed for insolvency in a Berlin court, saying the move was “necessary to ensure the safest path for all of our customers.”

Despite the insolvency proceedings, Nuri said clients would still have “guaranteed access” to their euro accounts and crypto wallets.

“All funds in your Nuri accounts are safe through our partnership with Solarisbank AG. The temporary insolvency proceeding does not affect your deposits, cryptocurrency funds and Nuri Pot investments that have been made with us” , the company said in a statement.

Formerly known as Bitwala, the company has been operating since 2015, providing users with the convenience of a regular bank account combined with Bitcoin and Ethereum wallets.

The startup also offers savings plans through recurring Bitcoin purchases, as well as the recently launched Nuri Pots, a collection of different exchange-traded funds (ETFs), and other investment products.

Last year, Nuri extended its Series B funding round to €24 million ($24.6 million). At the time, the startup said it had more than 250,000 customers in 32 countries.

Explaining the reasons behind the decision to file for insolvency, Nuri said the startup faces “sustained pressure” on its business liquidity in 2022 due to “significant macroeconomic headwinds”, such as the COVID pandemic. -19 and the Russian invasion of Ukraine, as well as “the cooling of public and private capital markets”.

“Additionally, various negative developments in the crypto markets earlier this year, including cryptocurrency sell-offs, the implosion of the Luna/Terra protocol, the insolvency of Celsius and other major Crypto funds have led to a crypto bear market,” the company said.

Notably, the insolvency filing came just two months after Kristina Walcker-Mayer, CEO of Nuri, announced that the company was laying off 20% of its workforce “to reorient our strategic plans towards faster profitability in order to adapt to the new reality of the financial market”. markets”.

Nuri reports that “all funds are safe”

On an FAQ page relating to the insolvency case, Nuri said he would work out the next steps with the insolvency administrator, stressing that “all funds are safe”.

According to the company, assets in crypto wallets and vaults remain available and can be withdrawn or traded at any time, noting that it “does not have access to coins and/or private keys in user vaults.”

Nuri also pointed out that the custodial wallets are managed by Solaris Digital Assets GmbH (SDA), which means that he does not manage clients’ fiat and crypto funds.

Nuri’s mobile app also remains available and is maintained “as usual”, allowing users to access their bank accounts through the app. So far, nothing has changed for SEPA bank transfers either, and customers can continue to use their Nuri debit cards, the company said on its FAQ page.

Nuri users, however, are still unable to withdraw funds from their bitcoin interest accounts as these were launched in partnership with the now bankrupt crypto lending platform Celsius.

“The Celsius shrink freeze remains unchanged, and the shrink feature remains inactive,” Nuri said.

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