- The exchange has struggled to find new investors since its latest Series B round in 2021
- The company says the bear market and political uncertainties have played a role in its insolvency
Nuri, one of Germany’s largest crypto exchanges, is the latest company in the digital assets sector to file for insolvency amid turbulent market conditions.
Customers can still make withdrawals, the startup said in a statement. The insolvency proceedings will not affect any deposits, cryptocurrency funds or Nuri Pot investments, according to the company.
“For the time being, nothing will change and Nuri’s app, product and services will continue to run,” the statement said.
Added the company: “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.”
The Berlin-based exchange has been struggling to find investors after its latest Series B in June 2021, t3n, a local German tech news website reported. Since its initial launch in 2015 under the name Bitwala, the company has received a total of 42.3 million euros ($43.1 million) from investors in eight rounds of funding.
The exchange has over 500,000 customers — making it one of the larger players in Germany, albeit one of the world’s smaller such entities.
Nuri has pinned its downfall on the crypto sell-offs and the collapse of cryptocurrency lender Celsius. Those factors — piled with the coronavirus pandemic, economic and political uncertainties due to the Russian invasion of Ukraine, plus cooling funding — have all played a role, the company said.
“We proceeded with the filling in due time to stay ahead of a lasting strain on the liquidity of our business. 2022 has been a challenging year for the startup ecosystem globally, especially for fintechs,” the exchange said.
The company said the insolvency filings are “temporary” and it is currently looking for a “viable long-term restructuring concept in the company’s current situation.”
Nuri is the latest cryptocurrency exchange to have been affected by the bear market. Recently, Singapore-based Zipmex, a Jump Crypto-backed exchange suspended withdrawals as it struggled with liquidity.
But not all hope is lost — crypto companies with larger cash reserves have stepped in to acquire struggling competitors. Last month, FTX reached a deal to acquire troubled lender BlockFi for up to $240 million — and had also made deals to purchase Bitvo and Embed Financial earlier in June.