Notably, the organization is prohibited from managing clients’ fiat and cryptocurrency funds directly due to a partnership with Solarisbank AG.
According to Cointelegraph, the 500,000-user German startup crypto bank Nuri filed for insolvency on Tuesday and cited substantial crypto sell-offs as well as the earlier this year’s collapse of Celsius and other crypto funds as grounds.
With 500,000 subscribers, the German startup crypto bank Nuri filed for bankruptcy on Tuesday, citing major crypto sell-offs as well as the earlier this year’s collapse of Celsius and other crypto funds as grounds.
The cryptocurrency bank emphasized that the insolvency would not impact its services, customer cash, investments, or users’ ability to withdraw their assets from the platform, but asserted that the move.
Some users of Nuri’s mobile app have reportedly had difficulties with money withdrawal; however, Nuri asserted on Twitter that this was due to high traffic and usage and emphasized once more that “funds are safe.”
Notably, the organization is unable to manage customers’ fiat and cryptocurrency funds directly due to a partnership with Solarisbank AG. According to the Solaris Group website, Nuri worked with the bank and its cryptocurrency subsidiary Solaris Digital Assets to outsource bitcoin banking and custody licenses.
Including the COVID-19 pandemic and the Russian invasion of Ukraine, Nuri claims that “significant macroeconomic headwinds and the cooling down of public and private financing channels” will have a “lasting impact” on the company’s cash in 2022.
The most well-known brands are Three Arrows Capital, Celsius, and Voyager Digital. Nuri joins a sizable number of cryptocurrency businesses that had issues with liquidity in the 2022 bear market, according to Cointelegraph.
