Don’t Nuri, Be Happy

Market Meditations | October 20, 2022

As some exchanges closed their doors, many were upset with the resulting locks on accounts. German crypto bank, Nuri, has chosen a different approach. Nuri just told its 500,000 users to withdraw funds from their accounts as the firm prepares to shut down and liquidate the business.

  • Nuri reported liquidity issues in August. The bank said that the insolvency of one of its main business partners put them over the edge. As a result, Nuri filed for temporary insolvency. While they didn’t specify the business partner, many believe Celsius to be the culprit, as they had partnered with Nuri.
  • CEO Kristina Mayer said they tried to work on a restructuring plan and secure a buyout, but it did not materialize. A statement from Nuri read, “Nuri is closing down its business operations. We ask our customers to withdraw their funds and assets as of 18.12.2022.
  • What percentage of funds will they be able to withdraw? Nuri says, “customers [will] have access… to withdraw all funds until the aforementioned date.

This is obviously a stark contrast to other exchanges that locked their customers’ accounts as insolvency manifested across the crypto space. Liquidations are never good for business, but for the moment Nuri appears to be making the best of a bad situation.