- Berlin-based cryptocurrency exchange Nouri (formerly Bitwala) filed for bankruptcy in Germany today.
- The company will continue to allow users to withdraw funds even as the company proceeds with the insolvency process.
- Nuri said various events, including the Russo-Ukraine war and the fall of Celsius, have affected the markets.
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German crypto exchange Nuri, formerly known as Bitwala, has filed for bankruptcy due to poor market conditions.
Noori declares bankruptcy
Noori filed for bankruptcy today, 9 August.
Unlike some recently bankrupt crypto platforms, Noori is not planning to deny services to its customers. Users will have guaranteed access to deposits and withdrawals, and Noori’s services will continue to function. It said its “temporary insolvency proceedings do not affect” [customer] Deposits, Cryptocurrency Funds and Nouri Pot Investments.”
Although Noori will keep existing accounts open, it is not accepting new customers and will not allow new accounts to be opened.
Noori doesn’t have most of the funds. It partnered with the German fintech bank Solarisbank AG to manage the euro deposits of its users. Similarly, Solaris Digital Assets GmbH (SDA) manages the exchange’s custodial crypto wallet, while the Bankhaus von der Heidt Nuri Pot handles the funds.
Noori says its bankruptcy proceedings will help it develop a long-term restructuring plan and claims it is “the safest route for all of our customers.”
The company cites market issues as its cause of bankruptcy, noting that “challenging market developments and the subsequent impact on financial markets” necessitated its bankruptcy filing.
More specifically, it called 2022 a “challenging year” for fintech startups in the aftermath of the COVID-19 pandemic and the market effects of the ongoing Russia-Ukraine war.
The company also cited the collapse in the crypto industry involving Celsius and Terra as concerns. Other companies also facing solvency issues include Holdnot, Wald, Babel Finance, CoinFlex, Voyager Digital and Zipmex.
Aside from the relationship with Celsius that affected his bitcoin interest account last month, Nouri did not specify whether it had contacts with the broader crypto industry.
Noori operated under the name Bitwala until it was rebranded in 2021. It was originally launched in 2015 and was one of the better known crypto services in Germany at the time.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.