German Crypto Broker Nuri GmbH Files For Insolvency
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Nuri claimed the failure of Celsius Network and the sell-off in the cryptocurrency market ultimately influenced the german crypto broker's decision. Within the last nine months, the price of Bitcoin (BTC) has dropped from $69,000 to as low as $17,000, leaving several significant companies struggling for survival. Recently, Bitcoin's value was about $23,000. Three Arrows Capital, a Singapore-based hedge fund, declared bankruptcy in July, as did Celsius and Voyager Digital.
Nuri's Insolvency
The cryptocurrency bank emphasized that insolvency will not affect its services, customer cash, investments, or customers' ability to withdraw their assets from the platform. Nevertheless, the bank claimed the action would "ensure the safest way forward" for all its clients. Some Nuri's mobile app users have reported having trouble withdrawing their payments. However, Nuri claimed this was due to high traffic and usage and reiterated the funds' safety.
Due to a collaboration with Solarisbank AG, the company does not manage customer fiat and cryptocurrency funds. The website of Solaris Group mentions the union between Nuri, the bank, and Solaris Digital Assets to outsource banking and custody licenses for cryptocurrencies.
According to Nuri, "major macroeconomic headwinds and the cooling down of public and private financing markets," including the COVID-19 epidemic and the Russian invasion of Ukraine, have put "lasting strain" on its company liquidity in 2022.