German neobank and crypto exchange Nuri files for insolvency

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

With 500,000 users Nuri was a substantial player both on the German neobanking and crypto scene.

It worked with tech provider Solarisbank to offer savings and crypto investment accounts and operating its business as a regulated crypto bank. 

Nuri blamed “​​challenging market developments” as well as the “crypto bear market” had put “lasting strain on the liquidity of our business” triggering its insolvency.

“We have been facing significant macroeconomic headwinds and the cooling down of public and private capital markets,” the company wrote in a blog post.

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

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

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

“Nuri has always been a frontrunner of innovation: Our vision is a world in which everyone is empowered to build their financial future,” the blog post concluded.

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