The ongoing crypto winter has claimed another victim as German cryptocurrency exchange, Nuri, has now joined other ailing crypto firms to declare insolvency. The German company filed for bankruptcy in a Berlin court on 9th August 2022 due to the prolonged bearish season that has hit the crypto market since the beginning of the year.

Handelsbatt pointed out that Nuri is the first German cryptocurrency firm to file for insolvency after failing to convince any short-term venture capitalists to help them overcome the damages inflicted by the crypto winter. However, unlike other ailing firms that halted economic activities (deposits, trades and withdrawals) on their platforms, Nuri’s customers will still be able to move their funds.

Nuri confirmed that the current crypto market crash and the collapse of Celsius Network, a crypto lending services, were the main reasons why the company has filed for bankruptcy as Nuri had strong business relations with Celsius. Speculators and observers believe that Nuri’s collapse could usher in more restrictive measures for German-based crypto firms because Nuri operated without a license through their affiliation with Solarisbank, a licensed German tech giant with branches in France, Spain and Italy.

The crypto winter has continued to wreck havoc on the cryptocurrency ecosystem for the past couple of months as a lot of influential crypto giants have layed off staff just to stay afloat while some have even shut down for good. The first and most prominent case was that of Singapore-based crypto hedge fund, Three Arrows Capital (3AC), which filed for bankruptcy following the collapse of Terra’s Luna and it’s stablecoin UST.

3AC’s crash eventually dragged one of the most significant cryptocurrency investment funds in the ecosystem, Celsius Network, with it. Celsius filed for insolvency after running a deficit of $1.19 Billion on its balance sheet after reaching a total valuation of more than $3 Billion. 3AC and Celsius Network were just the tip of the spear that has now pierced through other crypto companies like Blockfi, Voyager Digital, and now Nuri which has finally succumbed to the brutal hit of both companies despite struggling to stay afloat during the past few months.

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