The German Cryptocurrency Exchange Nuri Files for Bankruptcy
Nuri, one of the major crypto exchanges in Germany, is the latest firm in the digital assets industry to declare bankruptcy due to unstable market circumstances.
Customers may still withdraw funds, according to a statement from the business. According to the corporation, the bankruptcy procedures will not affect any deposits, cryptocurrency money, or Nuri Pot investments.
According to the statement, nothing will change for the time being, and Nuri’s app, product, and services will continue to operate.
Due to the current adverse market developments and resulting consequences of financial markets on Nuri’s commercial growth, the firm said that it filed for bankruptcy on Tuesday, August 9, 2022.
The Berlin-based exchange has struggled to secure investors since its most recent Series B in June 2021, according to t3n, a German digital news website. Since its founding in 2015 under the moniker Bitwala, the firm has raised 42,3 million euros ($43,1 million) via eight fundraising rounds.
The exchange has more than 500,000 clients, making it one of the largest in Germany but one of the smallest in the world.
Nuri attributes its demise to bitcoin sell-offs and the end of cryptocurrency lender Celsius. Combined with the coronavirus epidemic, economic and political uncertainty resulting from the Russian invasion of Ukraine, and cooling financing, these variables have all had a part, according to the business.
The firm said that the insolvency filings are “temporary” and is actively searching for a “sustainable long-term restructuring solution.”
The bear market has recently damaged Nuri, the most recent bitcoin exchange. Zipmex, a Singapore-based exchange supported by Jump Crypto, recently banned withdrawals due to liquidity issues.
However, there is still hope, as crypto businesses with more substantial financial reserves have purchased failing rivals. Last month, FTX secured an agreement to buy ailing lender BlockFi for up to $240 million. In June, FTX also reached agreements to acquire Bitvo and Embed Financial.