The German-based crypto bank – Nuri – revealed it will terminate its operations due to the harsh consequences of the crypto winter and the negative macroeconomic environment.
It informed that customers have until December 18 to withdraw their funds from the platform, while trading will be possible until November 30.
The Bear Market’s Latest Victim
Over the past several months, Nuri has been seeking venture capitalists and potential acquirers who could fix the company’s financial issues caused by the ongoing crypto winter. In August, it filed for insolvency (a state of monetary distress in which a firm or an individual is unable to pay their bills).
In a recent announcement, Nuri’s CEO – Kristina Walcker-Mayer – said the current economic conditions are so tough that the company failed to find the investors it needed. As such, it will liquidate its business, while customers will be able to withdraw their funds until December 18:
“Unfortunately, we have not been able to find investors to continue our mission and have asked our customers to withdraw their funds by 18/12/2022 at the latest, so the business can be terminated and liquidated. Customers have access and will be able to withdraw all funds until the aforementioned date.”
The executive assured clients that their assets are “safe and unaffected” by Nuri’s insolvency. Trading cryptocurrencies will not be possible after November 30.
Despite halting its operations, the company remains a keen proponent of blockchain technology and digital assets. According to Walcker-Mayer, those technological innovations will provide numerous opportunities in the future and “add true value to the lives of people:”
“Even though we weren’t able to continue writing our story, the power of technology and the endless possibilities of blockchain-based finance won’t end here.”
Some Other Affected Companies
When speaking of troubled crypto-related entities during this year’s crypto winter, one should mention Terra’s collapse. In May, the project’s native token – LUNA – and its algorithmic stablecoin – UST – crashed to virtually zero, causing massive losses for investors.
In June, a court in the British Virgin Islands ordered the Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) into liquidation.
A few weeks later, the crypto brokerage Voyager Digital suspended trading, deposits, and withdrawals on its platform.
“This was a tremendously difficult decision, but we believe it is the right one given current market conditions,” the organization’s CEO Stephen Ehrlich stated at the time.
Celsius Network is also part of that list. After pausing withdrawals, swaps, and transfers between accounts, the company filed for Chapter 11 bankruptcy protection with the Southern District of New York.
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