Cryptocurrency exchange Nuri has filed for bankruptcy, reportedly becoming the first German fintech company to take this step in a challenging year for industry startups. The company assures that customers’ access to platform services and their funds will not be affected.
Crypto exchanges cite ‘continued tight liquidity’ as reason for bankruptcy filing
Cryptocurrency Exchange in Berlin Nouri, formerly known as Bitwala, has filed for bankruptcy in a court in the German capital. After unsuccessfully securing a new round of funding, the company took action on Tuesday, Aug. 9, business newspaper Handelsblatt reported, noting that Nuri is the first German fintech company to file for bankruptcy due to the recent crypto market rout .
In a statement, the exchange said 2022 will be a challenging year for startups, especially those working Startups that work in financial technology.
Additionally, negative developments in the crypto space, including massive sell-offs, the implosion of the Terra/Luna protocol, and Celsius And other crypto funds have led to the bear market, Nuri said, explaining:
We continue to fill in due course to stay ahead of persistent pressures on our business liquidity.
Unlimited deposits and withdrawals for Nuri customers
The currency trading platform insists that the filing will not affect its products and services, customer funds or investments. Thanks to the partnership with Solarisbank, customers will continue to have unimpeded access to their accounts and be able to deposit or withdraw all funds at any time. This applies to cryptocurrency holdings and EUR deposits.
The cryptocurrency exchange also emphasized that it still believes the interim bankruptcy process provides the basis for developing and implementing a long-term restructuring plan. Nuri launched in 2015 and operated under the Bitwala name for a few years before changing its name in 2021.
“This step is necessary to ensure the safest path forward for all customers,” the company reiterated, promising its team will do everything possible to ensure its products and services continue to serve current and future customers.
Do you expect other German crypto companies to file for bankruptcy? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons, P365
Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.