The German crypto bank, Nuri is reported to be closing its services following the current state of the cryptocurrency market which is still bearish burdening the firm's operations.
As such, the bank has instructed its 500,000 users to withdraw funds from their respective accounts before the closure of business takes place.
It is understood that Nuri filed for insolvency during the crypto market crash and worked on a restructuring plan to further expand its business but the plan failed, commented Nuri CEO Kristina Mayer.
He added that Nuri had to overcome various obstacles such as raising new funds due to the unfavorable economic and political environment over the past few months.
Even during the issue crypto lender Celsius acted to block user withdrawals while his company went bankrupt, in contrast to Nuri who still gave users access to withdraw all of his assets before December 18.
Digital assets in user accounts will not be affected by Nuri's insolvency and users can even trade until 30 November 2022.
Meanwhile, Nuri had to file for temporary insolvency due to his partner who made things worse. Although the entity was not disclosed, it is likely that the main candidate is Celsius.
Previously, Celsius had partnered with Nuri in offering Bitcoin (BTC) interest accounts to customers but was terminated when Celsius faced bankruptcy.
In the meantime, Mayer is convinced that blockchain, cryptocurrency and decentralized finance will offer great opportunities to many individuals if financial innovations are safe and easy to use.
