German Crypto Exchange Nuri Filed For Bankruptcy – Crypto Winter Hits

German crypto exchange Nuri filed for bankruptcy as a result of the crypto winter.
buy cialis super active generic buy cialis super active online no prescription

Due to the extended bear market that the cryptocurrency industry has been experiencing since the year’s beginning, the German cryptocurrency exchange Nuri filed for insolvency before a Berlin court on August 9.

Reuters reports that despite the fact that insolvency frequently results in bankruptcy, users of Nuri will still be able to transfer their funds, unlike other platforms and investment funds that have stopped allowing customer withdrawals.

German Crypto Exchange Nuri Is The First Insolvent Crypto Company in Germany

According to Handelsblatt, Nuri is the first German cryptocurrency startup to declare bankruptcy after being unable to locate any short-term venture capitalists willing to assist them in recovering from the effects of the infamous “crypto winter.”

Nuri claims that the primary causes for the company’s filing for insolvency were the failure of the crypto lending platform Celsius Network and the collapse of the cryptocurrency market. Nuri had a good business relationship with Celsius.

“This challenging environment has had a lasting impact on the business development of Nuri GmbH and has now led the management to file for insolvency at the Berlin District Court.”

Due to its affiliation with Solarisbank, a German-licensed technology company with locations in Spain, Italy, and France, Nuri was able to operate without a banking license, which may signal the beginning of increasingly stringent regulations for cryptocurrency businesses with headquarters in Germany.

Companies Are Still Being Dragged Into Bankruptcy By The Crypto Winter

Large crypto enterprises have been suffering from the effects of the “crypto winter” for a few months now, with several significant companies cutting personnel or even closing permanently.

The first and most notable one was Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund, which declared bankruptcy when Terra and its stablecoin UST crashed, and over half a billion dollars was lost on the market for cryptocurrencies.

Celsius Network, one of the biggest cryptocurrency investment funds in the ecosystem, had to declare bankruptcy after running a $1.19 billion deficit on its balance sheet after attaining a valuation of more than $3 billion, which was eventually brought about by the fall of 3AC.

The bankruptcy of 3AC and Celsius Network served as the proverbial “tip of the spear” that sliced through other cryptocurrency businesses like Voyager Digital, BlockFi, and now Nuri, which, despite operating at full capacity in the months prior, were unable to recover from the devastating blow of both firms.

Check out the latest cryptocurrency news.