Crypto Neobank Nuri Terminates Services After Failing To Raise Funds
- Popular crypto neobank Nuri has suspended its services and confirmed that it will no longer be available for trading for customers.
- The crypto neobank’s users will have to withdraw their funds by 18/12/2022 as the firm is closing all its services including trading of cryptocurrencies by 30/11/2022.
- Nuri had raised close to $45 million in a funding round in 2021 from Sony Financial Ventures, Coparian and Earlybird Venture Capital.
Many blockchain and crypto service providers are having a hard time maneuvering through the bearish crypto market, and there are many firms that have failed to overcome the immense lack of trading volume in the space. In the light of this situation, popular crypto neobank Nuri has suspended its services and confirmed that it will no longer be available for trading for customers.
Nuri rose to popularity in the crypto market boom of 2021, becoming an important part of Germany’s crypto industry. However, this was not for long as following the crypto crash and a steady decline in the prices of leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) in 2022, the crypto neobank lost valuable revenue and was unable to continue its path.
It is crucial to note that the fintech firm had filed for insolvency in August following the crash of Luna ecosystem and the bankruptcies declaried by popular crypto firms like Celsius Network, Vauld, and Three Arrows Capital. This came as a surprise for the crypto community as Nuri had raised close to $45 million in a funding round in 2021 from some of the biggest names in the venture capital world including Sony Financial Ventures, Coparian and Earlybird Venture Capital.
“Due to the current challenging market developments and subsequent effects on financial markets on Nuri’s business development, we have filed for insolvency on Tuesday 9. August 2022. This step became necessary to ensure the safest path forward for all our customers,”said Nuri in a blog post.
Letter from the CEO
However, following the insolvency declaration in August, Nuri CEO Kristina Walcker-Mayer, confirmed that the firm, which was founded in 2015, was no longer in the condition to operate because there was no fresh funding available despite the various efforts of the executives. In the letter to the shareholds, users, and the media, Walcker-Mayer added that “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. As a result, Nuri had to file for temporary insolvency in August this year,”said Walcker-Mayer.
Additionally, the crypto neobank’s users will have to withdraw their funds by 18/12/2022 as the firm is closing all its services including trading of cryptocurrencies by 30/11/2022. All the assets in the customers’ accounts will remain safe and they will have full access to withdraw the digital assets stored in their accounts.