German fintech firm Nuri, formerly known as Bitwala, filed for insolvency at a Berlin court on Tuesday.
The company filed for insolvency to “stay ahead of a lasting strain on the liquidity of [the] business,” Nuri wrote in a blog post. While citing macroeconomic issues caused by the pandemic and Russia's invasion to Ukraine as factors leading to the decision, the firm mentioned the Terra/Luna collapse and crypto lending firm Celsius’ insolvency as reasons behind the filing.
Celsius suspending withdrawals had affected the company and its bitcoin interest product, Nuri said in June.
The insolvency proceedings will not affect users’ funds, Nuri assured, thanks to the firm's partnership with Solarisbank, another Germany-based fintech firm. Users can still access their deposits of euro, bitcoin, ether and Nuri Pot investments through the app.
“For the time being, nothing will change and Nuri's app, product and services will continue to run,” the company wrote.
The insolvency is the latest move made by the German firm amid the recent market downturn. In late May, the company laid off 20% of its employees.
Nuri has raised €42.3 million ($43.2 million) in funding over eight funding rounds to date, according to Crunchbase. The firm is funded by 13 investors, including Earlybird Venture Capital and Sony Financial Ventures.
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