German cryptocurrency exchange Nuri has filed for insolvency with a court in Berlin, becoming the latest in a string of digital assets platforms to face credit issues.
The company, founded in 2015, decided to proceed with the filling “to stay ahead of a lasting strain on the liquidity of our business,” according to a press release.
“We have been facing significant macroeconomic headwinds, and the cooling down of public and private capital markets,” Nuri said, due to the ongoing after-effects of the coronavirus pandemic and the subsequent economic and political turmoil caused by Russia’s invasion of Ukraine.
According to Nuri, these market developments have made it a challenging year for the startup ecosystem globally. This has especially been the case for cryptocurrency firms, with such cases as the collapse of the TerraUSD stablecoin, as well as the insolvency of Celsius and other major crypto funds earlier this year.
Even more recently, crypto brokerage firm Voyager Digital filed for Chapter 11 bankruptcy following a suspension on deposits and withdrawals. It was later granted approval to return $270 million worth of funds back to customers. Meanwhile, Binance-owned WazirX in India has had to endure raids and freezes on the accounts of its executives.
Nuri says deposits are safe
However, unlike other such crypto platforms facing difficulties, Nuri insists that the temporary insolvency proceedings would not affect its customers’ deposits. The company maintains its guaranteed access for customers to be able to deposit and withdraw all funds freely at any time.
The company also stressed that euro deposits, Bitcoin, and Ether deposits in wallets and vaults, as well as cryptocurrency funds Nuri Pot investments would not be affected by the situation.
In fact, the company said that for the time being nothing would change on its app, which will continue to offer products and services.
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