Nuri, a crypto-focused bank in Germany filed for bankruptcy. The reasons cited for this filing include market turmoil and macroeconomic conditions. Previously known as Bitwala. The company made its insolvency filing in a Berlin courtroom on August 9th. The company also said that it plans to lay off 20% of its workers so that it can work on long-term profitability.
According to a statement released by the company, management does not believe that this move will affect its services or investments. Customers will also have access to their funds which is guaranteed. Funds can also be withdrawn. Nuri was forced to take this step because of the current challenges in the global financial markets. The subsequent effects on Nuri’s business plans were very strong and the company didn’t have any other choice.
Nuri conducted business under the Bitwala name and rebranded itself in 2021. Originally launched in 2015, the company had established its reputation for being a good crypto service company in Germany. This digital bank took the help of another, Solarisbank. To help with licensing requirements and regulatory issues. It offers customers a wide range of savings and crypto-related investment products.
According to current estimates, the company has 500,000 customers. Its revenues quadrupled over 2021 but things changed drastically at the start of 2022. Nuri placed the blame for its current situation squarely on Celsius and its collapse. The pandemic, the Russia-Ukraine war, and other factors played key roles as well. The company stated categorically that these filings are temporary. It hopes to restructure and get back into the business in the near future.