After a market-wide meltdown submerged the cryptocurrency sector, caused by the collapse of some of its major participants in recent months, another crypto company has found itself in trouble.
Indeed, the startup cryptocurrency brokerage firm Nuri GmbH, previously called Bitwala, filed for insolvency in Berlin on August 9, according to the company’s blog post published on the same day.
After-effects of adverse circumstances
As the reasons factoring in its insolvency filing, the company cited unfavorable market conditions for fintech startups around the world and the need to protect its clients amid “a lasting strain on the liquidity of our business”:
“Due to the current challenging market developments and subsequent effects on financial markets on Nuri’s business development, we have filed for insolvency on Tuesday 9. August 2022. This step became necessary to ensure the safest path forward for all our customers.”
In addition, the crypto bank assured the public that this move “does not affect our services, customer funds or investments with Nuri,” adding that “for the time being, nothing will change and Nuri’s app, product and services will continue to run.”
As the post further explained, customer’s deposits and withdrawals are safe:
“Your Euro deposits in the Bank Account, Bitcoin and Ether deposits in Wallets & Vaults, and the Nuri Pot investments are not affected by this situation. You have guaranteed access and will be able to deposit and withdraw all funds freely at any time.”
Other troubles in crypto paradise
Meanwhile, Nuri’s move arrives at the heels of other major problems that have affected crypto companies and shaken the industry to its core, leaving countless users to deal with their aftermath and the ensuing bear market.
Among these troubles is the collapse of the Terra (LUNA) ecosystem, as well as the widely publicized bankruptcies of the crypto brokerage firm Voyager Digital, the hedge fund Three Arrows Capital (3AC), and the lending platform Celsius, as reported by Finbold.