- The crypto bank Nuri announced yesterday that it has filed for bankruptcy.
- The company blames the crisis in the crypto markets.
- However, customers do not have to worry about their deposits.
One of the few German startups that deals with the trading of cryptocurrencies, among other things, has to capitulate in view of the harsh conditions on the market. At least that’s how Nuri puts it in an official statement. The starting signal for the insolvency proceedings was already given yesterday.
The lending crisis on the crypto market, the collapse of Terra and the general economic situation have put too much of a strain on the company’s liquidity, according to its own account. Business will continue as normal for the time being. On the other hand, the direction in which the insolvency proceedings should develop was left open.
For customers of Nuri, the question now arises as to how to proceed. Here, the partnership with Solarisbank provides the necessary security.
Customer funds are safe
The company’s insolvency application has no direct impact on Nuri’s euro deposits. Customers’ cryptocurrencies are also secure, which are stored either in the bank’s internal wallets or in so-called vaults. While the internal wallets are managed by Solaris Digital Assets GmbH on a fiduciary basis, the customers have control over the self-managed vaults themselves anyway.
The insolvency therefore initially has no direct impact on the assets of the customers. Nevertheless, it was announced yesterday via social media that the systems were overloaded due to the high demand. Apparently, there has already been a kind of exodus by skeptical customers who now want to withdraw their funds as quickly as possible.
Celsius is still a problem
The first signs of Nuri’s impending predicament were already apparent beforehand. So they had to lay off staff and the affiliate program was also discontinued. If the company has to close completely in the end, then that would be a bitter loss for the German crypto scene.
However, the fact that the partner Celsius advertised financial products with the prospect of a fixed return is likely to weigh even more heavily. Since Celsius is also insolvent, the affected customer funds are frozen. Although Celsius is initially responsible, the question arises whether Nuri could not also be held liable in the end.
Therefore, it remains to be seen whether, in the face of these crises, it will be possible to get new investors on board and save the company.