German crypto exchange Nuri files for insolvency

Exchange says all its funds are safe, thanks to its partnership with Solarisbank

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The German crypto exchange Nuri has blamed the ‘current challenging market’ for itsinsolvency – Photo: Getty Images
                                

The German crypto exchange Nuri has filed for insolvency, blaming the “current challenging market” and to “ensure the safest path forward for all of its customers”.  

Nuri, formerly known as Bitwala, made it clear however, that the announcement “does not affect its services, funds or investments”.

The exchange said that all its funds were safe, thanks to its partnership with Solarisbank, a Berlin-based fintech company.

Nuri also said that any Bitcoin (BTC) and Ethereum (ETH) deposits in its wallets and vaults “are not affected by this situation.”  

Customers still have “guaranteed access and will be able to deposit and withdraw all funds freely at any time,” and “for the time being, nothing will change,” it said.

‘Challenging year’

Nuri said 2022 was a “challenging year for the start-up ecosystem globally, especially for fintechs”.

The crypto exchange added that the timing of its filing was designed to stay ahead of the “lasting strain on the liquidity” of the business.  

Nuri said the after-effects of the Covid-19 pandemic, political uncertainty in the markets after Russia’s invasion of Ukraine and “significant macroeconomic headwinds and the cooling down of public and private capital markets” had all fed into the current challenging market conditions.

Furthermore, the exchange said, events in the crypto markets this year such as the collapse and depegging of the stablecoin TerraUSD (UST) which hammered the price of its sister token Terra (LUNA), the crypto lender Celsius Network filing for bankruptcy, and the liquidation of the crypto hedge fund Three Arrows Capital (3AC) all helped feed into a crypto bear market.

What the future brings?

Nuri said it was “confident” that the “temporary insolvency” offers “the best basis for developing a viable long-term restructuring concept in the company's current situation.”

The crypto exchange said that it would do everything it can to ensure that its products and services “continue to serve future customers”.

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