German crypto-focused digital bank Nuri has filed for insolvency, citing macroeconomic headwinds and the crypto markets downturn.
The firm, formerly known as Bitwala, filed for insolvency in a Berlin court on Tuesday, weeks after it said it would lay off 20% of its workforce in a drive to reach profitability.
In a statement, it insists that the move "does not affect our services, funds or investments with Nuri" and that customers have "guaranteed access" to their funds, which can be withdrawn at any time.
The German mobile bank leans on Solarisbank for licencing and regulatory requirements, offering customers saving and crypto investment products. The company currently counts half a million customers and saw a quadrupling of revenue over the course of 2021.
However, the Covid-19 pandemic and Russian invasion of Ukraine have contributed to a cooling down of public and private capital markets.
More specifically, major cryptocurrency sell-offs, the implosion of the Luna/Terra protocol, the insolvency of Celsius and other major crypto funds have hit Nuri's business model.
Says the statement: "We are confident that the temporary insolvency proceedings offer the best basis for developing a viable long-term restructuring concept in the company's current situation."