Germany-based Nuri files for insolvency, CoinFlex kicks off restructuring process
Crypto winter has left Nuri insolvent, while CoinFlex is looking to restructure to deal with its unpaid debt.
Unfavorable market conditions have forced German-based crypto bank Nuri to file for insolvency.
Nuri announced on August 9 that it has become insolvent due to financial struggles due to the crypto winter and its exposure to the Luna and Celsius collapse. The filing became necessary to enable the digital bank safely return the customer’s funds while it works on a viable restructuring option.
Nuri said that all customer’s funds are safe and can still be assessed at any time as banking infrastructure provider Solarisbank AG protects them.
According to the statement:
“The temporary insolvency proceedings do not affect your deposits, cryptocurrency funds and Nuri Pot investments which have been done with us.”
As of press time, Nuri tweeted it was experiencing high traffic as many users try to make withdrawals.
We are currently experiencing high traffic and usage, leading to slower performance in our mobile app. Our team is working hard to improve performance. Please note that funds are safe and you can try to use the app at a later point of time 🙏🏻
— Nuri (@NuriBanking) August 9, 2022
CoinFlex files for restructuring
Through a Seychelles court, it is seeking approval from customers and stakeholders to pay its depositors from its holdings of rvUSD tokens, equity, and locked FLEX Coin. It will include new shareholders in the restructuring process.
Since halting customer withdrawal on June 24, CoinFlex has sought viable options to refund its users. It enabled limited withdrawals on July 15.