German Crypto Bank Nuri Files For Insolvency

The ongoing stagnation in the crypto sector is forcing yet another crypto entity – the German crypto bank Nuri, to go towards the path of bankruptcy, as the bank filed for insolvency on August 9.

According to an official statement by the bank, the insolvency filing comes due to “significant macroeconomic headwinds and the cooling down of public and private capital markets.” Despite the filing, the company assures that the “step became necessary to ensure the safest path forward for all our customers,” and that the insolvency will not affect its services, customer funds, investments, or the ability for customers to withdraw their assets from the platform.

Despite Nuri’s statement, several clients already reported having trouble accessing and withdrawing their assets via the bank’s mobile app. Nuri stressed that user funds are safe and the troublesome access is due to high traffic to their app.

Furthermore, the crypto bank cited a partnership with Solarisbank AG and its crypto subsidiary Solaris Digital Assets, which provided custody of both the fiat and crypto assets, while Nuri outsourced their banking and crypto custody licensing.

The Nuri/Solaris partnership means that Nuri can continue to provide services despite filing for insolvency, as long as Solaris doesn’t face any liquidity issues.

“Let us reiterate the most important information for you: All funds in your Nuri accounts are safe due to our partnership with Solarisbank AG. The temporary insolvency proceedings do not affect your deposits, cryptocurrency funds, and Nuri Pot investments which have been done with us.” Nuri announced, adding that nothing will change and Nuri’s app, product, and services will continue to run as before.

Another one bites the dust?

According to the crypto bank, the filing for insolvency comes as the global markets are still shaken from the crypto slump of 2022. Furthermore, the bear market the crypto ecosystem fell into, provoked “major cryptocurrency sell-offs, the implosion of the Luna/Terra protocol, the insolvency of Celsius and other major Crypto funds have led to a crypto bear market,” according to the bank.

“We are confident that the temporary insolvency proceedings offer the best basis for developing a viable long-term restructuring concept in the company’s current situation,” Nuri concluded.

Nuri’s insolvency filing is the latest crypto shutdown event, as the bank joins names like Voyager Digital, Celsius, Hodlnaut, and Three Arrows Capital, while companies like Robinhood are laying off staff in order to combat the operative expenses they make.

Cryptos are rising

In stark contrast, most of the crypto sectors are in the green over the past seven days, with most of the projects adding at least 10% to their price. Bitcoin is up 5% weekly, while Ethereum is inches away from a double-digit weekly price increase. Other projects like Binance Coin (BNB), Polkadot (DOT), and Zcash (ZEC) spiked as much as 20%. The biggest gainer in the top 100, however, is the Celsius token (CEL), which added almost 80% to its price.

Compared to last month, Ethereum added 60%, while the CEL token increased almost two-fold.