Crypto Neobank Nuri to Close Shop at the end of the Year

According to a letter published by Kristina Walcker-Mayer, Chief Executive Officer of German cryptocurrency exchange Nuri, the platform will no longer trade from the end of November. This is owing to the fact that the Sony-backed crypto neobank will be shutting down its operations at the end of the year. In effect, all customers have until 18th December to withdraw all their funds.

Owing to the elongated bearish atmosphere of the crypto market, Nuri filed for insolvency in a Berlin court in August. With the expectation that bankruptcy will follow the insolvency request, Nuri customers still had the right to transfer their funds as they were not stopped from initiating withdrawals like Hodlnaut and a host of other crypto lending firms.

In the short term, Nuri sought for venture capital firm to support its recovery process but could not find any. In the course of its insolvency restructuring process, the firm continued to search for external investment support in the form of an acquirer but was unable to find any. 

Nuri Was Unable to Get an Acquirer

As per the CEO’s published letter, “During the preliminary insolvency proceedings, we have worked very closely with our insolvency administrators on a restructuring plan in the past 3 months and tried to find a potential acquirer to continue our story. Unfortunately, we have not been able to find investors to continue our mission.”

Largely, Nuri’s woe was a result of its strong business with crypto lender Celsius Network which initially filed for Chapter 11 bankruptcy amidst its insolvency problems. 

“This year, the challenges have become insuperable due to the tough economical & political environment of the past months, which kept us from raising new funds or finding an acquirer. On top, the insolvency of one of our main business partners worsened the situation significantly and put us over the edge,” the CEO’s letter stated.

Then partly owing to the crispy crypto winter which has presented harsh market conditions. With the current state of affairs at Nuri, the business is set for liquidation and termination. For now, access to customers’ accounts is safe and unaffected by Nuri’s insolvency.