On August 9th, Nuri, a cryptocurrency bank with its headquarters in Germany, submitted their application to become insolvent. The bank, which has more than 500,000 customers, cited the recent cryptocurrency sell-offs and the bankruptcy of Celsius as reasons for its decision.
Nutrition faces financial difficulties.
The report from the financial institution indicates that the most recent decision it has made will assist in the safeguarding of the funds of its customers. However, it was stated that the application would have no effect on user funds or services.
Plus, the insolvency program won’t prevent people from cashing out their accounts. Thus, withdrawals remain permitted on the platform.
Some customers, however, say they’ve been locked out of the bank’s mobile app and can’t get their money out. On Twitter, the bank responded to the report.
According to the bank, this may be attributable to a rise in platform traffic. Meanwhile, the German company reaffirmed that funds remain secure.
During this time, the financial institution does not handle the cryptocurrency or fiat currency funds belonging to its customers. This is due to the partnership between the company and Solarisbank AG. Prior to this, Nuri had formed a partnership with the Solaris Group and Solaris Digital Assets, the latter of which specializes in cryptocurrency.
In accordance with the stipulations of the partnership, Nuri bank has handed over the management of its cryptocurrency holdings to the company. Through the utilization of Solaris’ crypto asset and banking infrastructure, Nuri was able to expand its operations and services as a result.
As a consequence of this, the German financial institution is able to continue providing its services because Solaris is not experiencing any liquidity issues. By doing so, Nuri is able to restructure the company while resolving its insolvency issue.
Still Available For Customers’ Withdrawals
This is not the case for other companies that have filed for bankruptcy. After their companies went bankrupt, the majority of cryptocurrency companies paused their customers’ withdrawals.
“The platform does not restrict users’ ability to make deposits or withdrawals of funds at this time. The company’s services, products, and app will continue to function for the time being, according to the report.
In addition, Nuri stated that its company encountered liquidity issues in 2022. This is as a result of the global macroeconomic crisis, the lingering effects of the crisis between Russia and Ukraine, and the pandemic caused by the COVID-19 virus.
In addition, the company’s financial situation has been impacted negatively by a number of unfavorable events that have occurred in the cryptocurrency industry. This includes significant crypto sales, the insolvency of Celsius, and the fall of Terra.
In the meantime, Nuri, which had been operating under the name Bitwala until 2015, was established in that year. It provides cryptocurrency trading services, cryptocurrency savings accounts, and multiple investment portfolios.
The German bank is among a growing number of cryptocurrency companies that are presently dealing with liquidity issues in 2022. Among them are Celsius, Three Arrows Capital, Babel Finance, and Voyager Digital.
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