German Crypto Neobank, Nuri, has shut down its operation amidst poor market conditions. The company confirmed the development in a Tuesday statement by its CEO, Kristina Walcker-Mayer. As revealed, Nuri decided to halt its operations owing to its inability secure investments from outside investors.
Meanwhile, this development comes a few weeks after the Neobank filed for bankruptcy. Recall that Nuri had, in recent times, joined the list of crypto firms impacted by the implications of the harsh market conditions. Although, the firm, earlier raised about $45 million in an investment funding round. According to Dealroom data, participants in the round include Sony Financial Ventures, Coparian, and Early Bird venture capital.
Last May, Nuri laid off about 45 of its employees. According to Walcker-Mayer, the layoff occurred as a massive correction in tech and fintech valuation. Then, the CEO stated that the firm took the decision owing to rising inflation. Walcker-Mayer further stated that the increase in interest rate in the US, is also a contributory factor. In addition, Nuri classified 2022 as a difficult year for start-ups, especially the financial technology industries.
Reacting to the bankruptcy claim filed in August, Kristina Walcker-Mayer, noted the company had employed possible means to map out its restructuring strategies and continue its operation. According to him, the challenging economic and political environment has prevented Nuri from raising funds and finding investors within the last few months.
Walcker-Mayer further stated that the insolvency of one of its main business partners also aggravated the situation. Meanwhile, the CEO also appreciated Nuri’s customers and employees. As of now, the company has about 200 employees.
Nuri advises customers to withdraw funds by December 18
Due to its inability to secure investors, Nuri, however, advised its customers to withdraw their funds by December 18. This means the company can now be terminated and liquidated.
Nuri is a German-based neobank that allows users to invest in Bitcoin and Ethereum from a German bank account. The company was able to provide these services through its partnership with the bank-as-a-service firm, SolarisBank and a non-custodial wallet. According to Nuri, trading activities will be permitted on its platform until November. Also, its previous insolvency proceeding won’t affect it users’ assets.
Beyond Nuri, other firms affected by the prevailing crypto market conditions include Hodlnaut, Celsius, Three arrows capital, Vauld, and many more. Occasioned by this development, many of these crypto companies halted withdrawals, deposits, and trading on their respective networks. Similarly, they also dismissed a large percentage of their workers to cut costs.