German neobank and crypto exchange Nuri file for insolvency

Digital bankSavings and investment

The company says its 500,000 customers will have “guaranteed access” to their funds during the process.

Image source: Nuri management team.

European neobanking app Nuri (formerly Bitwala) has filed for insolvency after already laying off 20% of its staff in May.

With 500,000 users, Nuri was an important player in both the German neobanking and crypto scene.

It has worked with technology provider Solarisbank to offer crypto savings and investment accounts and operate its business as a regulated crypto bank.

Nuri blamed “difficult market developments” as well as the “crypto bear market” for putting “sustained pressure on our company’s liquidity,” triggering its insolvency.

“We faced significant macroeconomic headwinds and cooling public and private capital markets,” the company wrote in a blog post.

Nuri reassured customers that withdrawals and all its services would continue to operate during insolvency, with customer funds held in accounts managed by Solarisbank.

“You have guaranteed access and will be able to deposit and withdraw all funds freely at any time. At this time, nothing will change and Nuri’s app, products and services will continue to operate,” the company added.

In terms of next steps, Nuri described the insolvency as “temporary” to allow him to develop a “long-term viable restructuring concept”.

“Nuri has always been a forerunner in innovation: our vision is a world in which everyone is empowered to build their financial future,” the blog post concludes.

Last June, Nuri extended its Series B funding round to €24 million, with a slate of investors including Coparion, DIP Capital, Earlybird Venture Capital and Sony Financial Ventures.

Subscribe to our newsletter

Comments are closed.