Nuri files for bankruptcy

After months of searching for investors, the crypto startup is now running out of money.

Fintech Nuri filed for bankruptcy on August 9, as t3n reported. This was evidenced by an entry in the insolvency register, it said. The crypto bank had recently struggled for months to find new investors. According to information available to t3n , neither Pavilion Capital, which was considered a potential investor, nor the previous shareholders were able to provide the necessary liquidity in the short term. The search for new investors had been a struggle for the cryptocurrency bank for months. As a result, Nuri's management had to inform shareholders by email about the filing of insolvency proceedings at the local court. Christoph Iwaniez, CFO and managing director, stated in the email that he expected the Berlin court to accept the insolvency application. The next step would be to appoint an "insolvency advisor" within 24 hours.

With a "bitcoin yield account," Neoank Nuri, founded in 2015, enabled its customers to lend their own cryptocurrency assets for a profit. The Berlin-based fintech had offered its investors to receive payouts in weekly increments while earning a return of up to three percent per year on their bitcoin. U.S.-based crypto expert Celsius Network and the Berlin-based fintech collaborated on the project. Celsius had to file for bankruptcy back in early July. As a result, millions of Nuri's customer funds were frozen there. In eight fundraising rounds, Nuri received a total of €42.3 million, according to Crunchbase. The most recent funding was raised in a Series B round on June 27, 2021. VC firm Earlybird Venture Capital is one of the main backers and contributed around ten million euros and 30%.