Nuri, a German startup crypto bank with 500,000 users, filed for bankruptcy on August 9. The company cites the poor market and the bankruptcy of Celsius and other players as the reason for the bankruptcy.
Customer credits not at risk
Nuri calls this decision “the safest way forward” for all customers. It indicates that the insolvency has no effect on the service, client funds, investments or the ability for clients to withdraw their funds from the platform.
Some customers report having trouble withdrawing their funds from the platform’s mobile app. Nuri herself indicates that the huge traffic to the application is the reason for this and underlines that “the funds are safe.”
Nuri does not directly manage clients’ funds, Solarisbank AG does that for them. Solaris currently does not have liquidity problems, so Nuri’s services will continue, despite the restructuring.
Confidence in the future
Berlin-based Nuri, formerly known as Bitwala, was founded in 2015 and offers various forms of savings accounts. To save at Nuri you only pay a fee of 1 percent on transactions. Now it seems that the assets of customers are in danger, although Nuri contradicts this herself.
“We are confident that the process we are in now provides the best basis for a long-term restructuring of the company,” said Nuri. With the issues, the German company joins a long list of other crypto firms that are in dire straits. Voyager Digital, Celsius and Three Arrows Capital are among those on that list.
Until now, it has been quiet in the Netherlands around the big players. It seems that the Dutch parties for the most part have their affairs in order. Although the crypto winter is not yet over and anything can still happen.