Crypto winter is far from over. Its most recent victim is a now insolvent German crypto exchange: Nuri.
Crypto Winter of 2022 has claimed a new victim. On August 9, German crypto exchange Nuri filed for default before a Berlin court due to the prolonged bearish cycle that the crypto market has experienced since the start of the year.
However, while defaults often lead to bankruptcy, according to Reuters, unlike other platforms and hedge funds that have halted customer withdrawals, Nuri users can still transfer their funds.
Nuri is the first German crypto company to go bankrupt
As Handelsblatt pointed out, Nuri was the first German crypto company to file for default after failing to find any short-term venture capitalists interested in helping them recover from the damage caused by the ” the infamous “crypto winter” caused.
According to Nuri, the collapse of the crypto market and the collapse of crypto lending service C Network were the main reasons why the company filed for bankruptcy. Nuri has been doing strong business with degrees Celsius.
“This challenging environment has had a lasting impact on the business development of Nuri GmbH and has now led the management to file for default in the Berlin District Court.”
The collapse of Nuri could open the door to more restrictive measures for crypto companies based in Germany, as the company operates without a banking license thanks to its partnership with Solarisbank, a Licensed German technology company with branches in Spain, Italy and France.
Crypto winter continues to drag companies into bankruptcy
For a few months now, crypto winter has wreaked havoc on major crypto companies, with a lot of influential businesses laying off employees and even closing because of it.
First and foremost, Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, filed for bankruptcy following the collapse of Terra and its stablecoin UST, wiping out nearly half of it. billion dollars from the cryptocurrency market.
The collapse of 3AC eventually led to C Network, one of the most important crypto investment funds in the ecosystem, which had to file for bankruptcy following a $1.19 billion deficit on its balance sheet. accounting after reaching a valuation of more than $3 billion.
The bankruptcy of 3AC and Celsius Network has spearheaded other crypto companies such as Voyager Digital, BlockFi and now Nuri, despite being strong in previous months, could not withstand the devastating blow of both companies.