Today’s news about cryptocurrencies includes the closure of crypto bank Nuri, which filed for provisional insolvency in August following a challenging year made worse by the failure of one of its business partners and the inability to find an acquisition.
But before that happens, the German-based cryptocurrency bank has instructed its clients to request a withdrawal before December 18, 2022.
Nuri’s 400,000+ customers withdraw funds
As more people looked to take advantage of the advantages of crypto banks, Nuri, formerly known as Bitwala, experienced tremendous growth after beginning operations in 2015.
But as CEO Kristina Mayer pointed out in a letter to clients on Tuesday, the “insurmountable” difficulties of the previous year and the failure to find a buyer have driven it to the brink.
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.”
Customers have been guaranteed by the neo-bank that access will be maintained until the specified date and that its collapse will not harm their assets.
Mayer thinks blockchain and cryptocurrency are here to stay and that there are unlimited possibilities with this technology, despite the tragic conclusion to the Nuri narrative.
“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.”
The 400,000+ users of the neo-bank now have the opportunity to withdraw their fund’s thanks to Nuri’s announcement, which appears to be different from the situation that previously awaited clients of many crypto lenders, including Celsius and Voyager Digital. After most providers stopped allowing customer withdrawals during the crypto winter, several bankruptcy filings occurred.