The Berlin fintech Nuri has filed an application to open insolvency proceedings.

According to a statement, the step is necessary to ensure the continued operation of the app and the fulfillment of liabilities.

Discussions with venture capitalists have apparently failed.

Nuri has been trying to get new capital over the past few days and weeks.

Archibald Preuschat

Editor in Business

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Investors were apparently also deterred by the damage to the reputation of the Berlin fintech, which previously operated under the name Bitwala, in connection with the insolvency of the US crypto bank Celsius Network.

The fintech has referred customers to Celsius with its Bitcoin Earnings Account product.

Their deposits have been frozen for around four weeks.

Nuri himself only indirectly confirms a connection: Negative developments in the crypto markets earlier this year, including significant cryptocurrency sell-offs, the implosion of the Luna/Terra protocol and the bankruptcy of Celsius and other large crypto funds would have initiated a crypto bear market.

This challenging environment had a lasting impact on business development.

In addition to the classic bank account, the fintech also offered its customers investments in cryptocurrencies.

The deposits are safe, according to the fintech.

Neither the assets of Nuri customers in the bank accounts (euro), the crypto wallets and vaults (Bitcoin and Ether) nor the Nuri pot investments are affected by the insolvency.

Even during the bankruptcy proceedings, Nuri customers would still have guaranteed access to their deposits and could withdraw them in full at any time.

No own banking license

Nuri itself does not have its own banking license, but is a "tied agent" of Solarisbank.

They protect both euro deposits and crypto assets.

"Until further notice" the app as well as the products and services of Nuri are to be continued unchanged.

However, the Celsius Network's bankruptcy and Nuri's involvement could be more than just reputational damage.

“Every day, three to five victims contacted us.

Around 30 in total,” says Walter Späth, specialist lawyer for banking and capital market law.

His Berlin-based law firm Dr.

Späth & Partner takes care of Nuri customers whose money is frozen in the USA.

These are often overwhelmed because the first letters from the insolvency administrator are now fluttering into their homes.

But of course there is more at stake: claims for damages against the Berlin fintech itself

Among the questions the attorney and his team are currently investigating is whether Bitcoin Yield Account customers have been made aware of who their contracting party was in the first place.

And whether Nuri properly reviewed the concept of Celsius Network before referring its clients to the crypto fintech in the US.

"In addition, the question arises as to whether Nuri has informed its customers about the likely reimbursement received for the mediation," says Späth.

However, the specialist lawyer for capital law is already certain of one thing: “There will be numerous nasty surprises in the crypto sector.

This is also partly due to a lack of regulation.”

A few weeks ago, Nuri announced that it would have to lay off almost a quarter of its 200 employees.

At that time, Nuri boss Kristina Walcker-Mayer had hoped in an interview with the FAZ that "this one deep cut" could remain.

Now she wants to "develop a long-term viable restructuring concept" in the insolvency proceedings.