Reading Time: 2 minutes
- German crypto bank Nuri has announced it will enter liquidation
- The bank, formerly Bitwala, failed to find a buyer after entering insolvency
- The platform will shut down on December 18th
German crypto bank Nuri announced this week that it has no choice but to enter liquidation after it failed to find a buyer. The bank, which started as Bitwala in 2015, filed for insolvency in August, citing “current challenging market developments”. These were classed as “temporary insolvency proceedings” while a long term solution was sought. However, one has not been forthcoming, and the platform will close in December.
“Insuperable” Challenges Defeated Nuri
Nuri CEO Kristina Walcker-Mayer made the announcement on Tuesday, saying that the challenges facing the bank have “become insuperable due to the tough economical and political environment of the past months”, which it said prevented it from raising new funds or finding an acquirer at a time when it needed to expand.
In addition, Walcker-Mayer said, the insolvency of one of its main business partners earlier this year worsened the situation significantly and “put us over the edge”, leading to the insolvency filing in August.
Nuri Failed to Find Buyer
A two-month search for an acquirer, conducted at a time when crypto investment is significantly down on previous years due to the onset of the crypto winter, failed, giving Nuri no choice but to shut down.
Walkcer-Mayer assured users that their assets were safe, and asked all Nuri customers to withdraw their funds before the platform closed on December 18th, with trading possible until November 30th.
Bitwala was a popular name in the crypto payment world, changing its name to Nuri shortly after Walkcer-Mayer took over. However, it seems that the plans put in place were too ambitious, or conducted at the wrong time, and Nuri was left without a safety net.