Berlin-based neobank Nuri has officially closed shop, citing “insurmountable” challenges, which prevented the firm from raising new funds or finding a buyer.
Formerly known as Bitwala, Nuri filed for insolvency in August this year after letting go of 20% of its workforce as the firm struggled to root out cryptocurrency prices.
According to Nuri, the firm has been working “very closely” with its insolvency administrators on a restructuring plan since then, trying to find a potential acquirer.
“Unfortunately, we have not been able to find investors to continue our mission and have asked our customers to withdraw their funds no later than 18/12/2022 so that the business can be closed and liquidated,” CEO Kristina Walcker-Mayer wrote in a blog post on Tuesday.
Nuri also referred to now-bankrupt crypto-lending firm Celsius — “one of our most important business partners,” — whose insolvency “significantly worsened the situation and put us over the edge.”
The firm assured customers that all the assets in their accounts were safe and unaffected by the company’s insolvency – and that they can continue crypto trading until the end of November.
Bitwala – the end of a dream
Before changing to Nuri in May 2021, Bitwala has been operating since 2015, offering users the convenience of a regular bank account combined with Bitcoin and Ethereum wallets.
Some benefits offered by the company included savings plans via recurring Bitcoin purchases, as well as Nuri Pots – a collection of various exchange-traded funds (ETFs) and other investment products.
Nuri raised its Series B funding round to $23.5 million (€24 million) in June 2021, reporting more than 250,000 customers in 32 countries at the time.
“Nuri looked beyond old boundaries, leveraging new technologies including blockchain and decentralized finance to open up a wide range of opportunities for anyone to manage and grow their money,” Walcker-Maye said.
While she regretted that Nuri was unable to continue writing her story, Walcker-Maye said she still believes “in the endless possibilities of blockchain-based finance” that will “add real value to people’s lives.”
The harsh reality, however, is that as many as 215 Nuri employees – according to the company’s LinkedIn profile – are now set to lose their jobs.
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