German Insolvency Exchange Nuri Files
Key points to remember
- Berlin-based cryptocurrency exchange Nuri (formerly Bitwala) filed for insolvency in Germany today.
- The company will continue to allow users to withdraw funds even during insolvency proceedings.
- Nouri said various events, including the Russian-Ukrainian war and the collapse of Celsius, affected the markets.
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Nuri, a German crypto exchange previously known as Bitwala, has filed for insolvency due to poor market conditions.
Nuri declares insolvency
Fed filed for insolvency today August 9th.
Unlike some recently insolvent crypto platforms, Nuri does not plan to deny services to its customers. Users will have guaranteed access to deposits and withdrawals, and Nuri’s services will continue to operate. She said her “temporary insolvency proceedings do not affect [customer] deposits, cryptocurrency funds and Nuri Pot investments.
Although Nuri keeps existing accounts open, it does not accept new clients or allow new accounts to be opened.
Nuri does not hold most of the funds herself. It maintains a partnership with the German fintech bank Solarisbank AG in order to manage the euro deposits of its users. Similarly, Solaris Digital Assets GmbH (SDA) manages the exchange’s custodial crypto wallets, while Bankhaus von der Heydt manages the Nuri Pot funds.
Nuri says his insolvency proceedings will help him develop a long-term restructuring plan and says it’s “the safest path for all of our clients”.
The company cites market problems as the reason for its insolvency, noting that “difficult market developments and subsequent effects on financial markets” made its insolvency filing necessary.
Specifically, he called 2022 a “difficult year” for fintech startups due to the consequences of the COVID-19 pandemic and the market effects of the ongoing Russian-Ukrainian war.
The company also cited meltdowns in the crypto industry involving Celsius and Terra. Other companies are also experiencing solvency issues, including Holdnaut, Vauld, Babel Finance, CoinFLEX, Voyager Digital and Zipmex.
apart from one relationship with Celsius which affected his bitcoin interest account last month, Nuri did not elaborate on whether he has exposure to the broader crypto industry.
Nuri operated as Bitwala until it was rebranded in 2021. It originally launched in 2015 and was one of the best-known crypto services in Germany at that time.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and other cryptocurrencies.
