Crypto Bank Nuri Warns 500k Customers To Remove Cash Before Shutdown

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The German exchange had more than 500,000 users. However, he declared bankruptcy in August due to “difficult market changes and ensuing repercussions of financial markets.” The business said in a previous statement. 

Nuri Declares Bankruptcy

German cryptocurrency bank Nuri plans to shut down in 2022 and has told all its 500,000 customers to take their cash out of their wallets. It makes Nuri yet another casualty of the bear market that began in 2022.

The company declared bankruptcy in August after revealing that it had declared bankruptcy due to the financial strains caused by cryptocurrency winter. In addition, Nuri reported having its first problem with liquidity in August. 

At the time, it was said that business would go on as usual while the company worked on a reorganization plan and tried to get a buyout. However, the buyout has not been successful in materializing.

Nuri formed a partnership with innovative European crypto and net banking Vivid Money to ensure its users can continue trading crypto. According to the information provided by the firm. All Nuri customers will be eligible for a unique offer and the exchange of cash and assets.

In a blog post published on October 18, Nuri Director Kristina Mayer revealed that despite all of the efforts of the firm. It will not be able to continue its activities in the future.

In contrast to the defunct cryptocurrency lender Celsius, which froze customer transfers before it all went wrong. Nuri is urging users to remove their holdings just before the deadline on December 18.

“Customers will have access to their money, and they’ll be able to take out money until the date previously specified. Your Nuri account and its contents are entirely immune to the bankruptcy that has befallen Nuri. According to what the article says, trading will be available till 30/11/2022. 

Mayer: The Difficulties Have Become Unsurmountable

Mayer stated, “This year, the difficulties have become insurmountable due to the difficult political and economic climate of the previous months.” It prevented the company from finding a buyer or bringing up new funds.

Mayer continued by saying that “the environment has held us from boosting additional capital or discovering an acquirer.” On top of that, the failure of another of our most important business partners to pay their bills severely exacerbated the problem.

Consequently, in July this year, Nuri was forced to declare himself temporarily bankrupt. However, Mayer did not identify its bankrupt business partner by name. 

Celsius seems the most likely possibility, given that it has teamed with Nuri to provide Bitcoin interest accounts to Mayer’s consumers. When Celsius started heading into collapse, these balances were immediately closed.

Mayer also said that the organization is still optimistic about the prospects of financial services based on blockchain technology. “We still trust in new financial technology. We are confident that blockchain, crypto, and distributed finance will provide options that bring genuine value to individuals in the future.

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