Nuri GmbH, a German cryptocurrency exchange, has just filed for insolvency with a Berlin court due to the “current challenging market developments and subsequent effects on financial markets on Nuri’s business development”.
The ongoing crypto market rout claims another casuality. It turned out to be dark year for the crypto industry as leading crypto companies either filed for bankruptcy or announced mas lay-offs. In July 2022, One of the biggest crypto lenders in the world, Celsius Network, filed for ‘Chapter 11 bankruptcy’, after a massive cryptocurrency sell-off resulting in a dire financial distress. An array of cascading red graphs across various crypto exchanges have sent investors into a frenzy.
What Led to the Insolvency?
Nuri filed for insolvency on Tuesday, August 9th, 2022. This does not affect our services, customer funds or investments. You can find a complete statement of this situation on the Nuri Blog: https://t.co/UgAyckWE7J
— Nuri (@NuriBanking) August 9, 2022
In the latest string of failures to hit the sector, German crypto exchange, Nuri, with nearly with 500,000 customers, has announced that it has filed for insolvency. The crypto platform emphasized that it will “ensure the safest path forward” for all its customers, assuring that the insolvency will not affect its services, customer funds, investments, or the ability for customers to withdraw their assets from the platform. Nuri explained,
“Customers will have guaranteed access and will be able to deposit and withdraw all funds freely at any time. For the time being, nothing will change and Nuri’s app, product and services will continue to run.”
According to the official blog post, Nuri, previously called, Bitwala, blamed the recent crypto sell-off along with various negative developments in the crypto markets including Luna/Terra collapse, bankruptcy of of Celsius and other major Crypto funds, leading to insolvency.
Nuri also stated that significant macroeconomic headwinds and the cooling down of public and private capital markets such as the global pandemic and the Russian invasion of Ukraine has contributed to the current financial crunch. The German crypto exchange said,
“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.”
Singapore Facing a String of Adversities
Recently, Singapore based crypto lending platform, Hodlnaut, announced the suspension of its withdrawals, deposits, and token swaps. The company expressed that it was forced to take the decision amid “difficult market conditions”.
Dear users, we regret to inform you that we will be halting withdrawals, token swaps and deposits immediately due to recent market conditions. We have also withdrawn our MAS licence application. Here is our full statement https://t.co/5KfHUBzWsn Our next update will be on 19 Aug.
— Hodlnaut (@hodlnautdotcom) August 8, 2022
Unfortunately, Singapore, a major centre for crypto and blockchain in Asia, has witnessed several crypto companies run into difficulties in recent months. Last month, Singapore-based crypto hedge fund, Three Arrows Capital, filed for Chapter 15 bankruptcy in the the Southern District of New York federal court.