Oct 20, 2022 06:50
In cryptocurrency news today, crypto bank Nuri, which filed for temporary insolvency in August after a tough year made worse by the collapse of one its business partners and the failure to get an acquirer, is shutting down.
But before it does, the German-based crypto bank has asked its customers to withdraw their funds by December 18, 2022.
Nuri’s 400,000+ customers to withdraw funds
Nuri, formerly Bitwala, launched its operations in 2015, and saw massive growth in the years that followed as more people looked to tap into the benefits of crypto banks.
Yet, as CEO Kristina Mayer noted in a letter to customers on Tuesday, the ‘insuperable’ challenges of the past year and the inability to secure a buyer have pushed it over the edge.
There might be no coming back – and the plan is to ensure customers get back their assets.
The Nuri CEO noted:
“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 and have asked our customers to withdraw their funds by 18/12/2022 at the latest, so the business can be terminated and liquidated.”
The neo-bank has assured customers that they will continue to have access until the aforementioned date, and that customer assets are unaffected by its insolvency.
Despite the sad ending to the Nuri story, Mayer believes that blockchain and crypto are here to stay and that there are endless possibilities with this technology.
“We still believe in innovative financial technology and are convinced that Blockchain, cryptocurrency and decentralised finance will offer opportunities that add true value to the lives of people.”
Nuri’s announcement means the neo-bank’s 400,000+ users have the chance to get their money out, which, on the face of it, is unlike the scenario that recently greeted customers of several crypto lenders, including Celsius and Voyager Digital. The series of bankruptcy filings over the crypto winter came after most providers suspended customer withdrawals.
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