German Crypto Bank Nuri Asks Clients to Withdraw Funds as It Goes Out of Business

Digital asset platform Nuri has told customers to withdraw their funds in the next two months, after taking a hit from the crypto winter. Formerly known as Bitwala, the Berlin-headquartered cryptocurrency bank filed for insolvency earlier this year and failed to find a buyer.

Crypto bank and exchange Nuri has instructed users to withdraw their funds by Dec. 18, 2022 at the latest. The Germany-based company will then terminate and liquidate its digital asset business, according to a letter from its CEO Kristina Walcker-Mayer, who assured:

Customers have access and will be able to withdraw all funds until the aforementioned date. All assets in your Nuri account are safe and unaffected by Nuri’s insolvency.

The chief executive pointed out that the platform will continue to support trading until Nov. 30, 2022. The announcement comes after Nuri filed for temporary insolvency in August. Reports at the time noted that it became the first German fintech to make the move in a challenging year for crypto startups.

Nuri launched in 2015 and for a few years, until the rebranding in 2021, operated under the name Bitwala. Over the years, the company went through ups and downs but this year’s challenges became insuperable.

The tough economic and political conditions prevented it from attracting investors and raising new funds. The insolvency of one of its main business partners worsened the situation even further, and despite working closely with its administrators on a restructuring plan in the past three months, Nuri was unable to find an acquirer.

While many companies operating with digital assets saw significant growth when crypto prices reached their all-time highs last year, many were hit hard by the market slump in 2022 and events such as the collapse of the terrausd (UST) stablecoin in May. Finding an investor has proven difficult. For example, last month online payments firm Bolt scrapped a deal to buy crypto provider Wyre.

Do you expect other German crypto companies to go out of business in the near future? Share your thoughts on the subject in the comments section below.