German formerly known as Bitwala cryptocurrency stock exchange company Nuri filed for bankruptcy at a court in Berlin on Tuesday.
In a blog post, Nuri stated that the company has filed for bankruptcy “to avoid permanent pressure on its liquidity.”
Cryptocurrency Exchange Listed These Factors That Caused Bankruptcy
The firm cited the macroeconomic problems caused by the pandemic and the Russian invasion of Ukraine as factors that led to the decision, while citing the Terra/Luna collapse and the bankruptcy of crypto loan firm Celsius as the reasons behind the application.
Nuri said in June that Celsius’s suspension of withdrawals has caused the company and bitcoin He said it affects the interest rate product.
Nuri assured that the bankruptcy proceedings would not affect users’ funds, thanks to the firm’s partnership with Solarisbank, another fintech firm based in Germany. Users will be able to continue to access their deposits consisting of euro, Bitcoin, Ethereum and Nuri Pot investments through the application.
“For now, nothing will change and Nuri’s app, products and services will continue to work,” the company wrote.
The latest bankruptcy step was the last attempt by the German company, with the recent decline in the cryptocurrency market.
The company laid off 20% of its employees at the end of May.
According to Crunchbase, Nuri has raised €42.3 million ($43.2 million) in eight funding rounds to date. The firm is funded by 13 investors, including Earlybird Venture Capital and Sony Financial Ventures.
*Not investment advice.
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