Crypto Bank Nuri files for insolvency, stating “significant macroeconomic headwinds and the cooling down of public and private capital markets.”
Formerly known as Bitwala, Nuri Bank filed for insolvency in a Berlin court on Tuesday.
This news came after it announced laying off 20% workforce to reach profitability.
Nuri announced its insolvency via Twitter. However, it also stressed that the bankruptcy would not affect its services, customer funds, investments, or the ability of customers to withdraw their assets from the platform.
The company does not handle customers’ fiat and cryptocurrency funds.
The Solaris Group website states that Nuri collaborated with the bank and its cryptocurrency subsidiary Solaris Digital Assets to outsource banking and custody licences for cryptocurrencies.
Nuri attributed the financial strains due to the Covid-19 pandemic, the Ukraine-Russia war, and “significant macroeconomic headwinds and the cooling down of public and private capital markets.”
Nuri also stated, “Additionally, various negative developments in the crypto markets earlier this year, including 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.”
Additionally, Nuri said in a statement, “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, founded in 2015, offers cryptocurrency trading services with 1% trading costs, portfolio investment baskets called “Nuri Pots,” and cryptocurrency savings accounts.
The list of crypto firms declaring themselves insolvent is increasing, with notable names being Three arrow capital, Celsius and Voyager.
Nuri has joined this large group of cryptocurrency companies that have experienced liquidity problems during the bear market of 2022.