Bear Market Claims Another Victim Under Nouri Exchange

German crypto exchange Nouri will close its doors on December 18, 2022, after failing to raise enough capital as it was reeled in by the widespread crypto credit contagion related to the Celsius network.

Accordingly, the company has asked customers to withdraw their crypto and fiat funds before the closure of the Noori app on December 18, 2022.

Nouri exchange had a strong relationship with Celsius

Customers holding Euro funds in their Nuri accounts can withdraw money from an ATM using their Nuri Visa Debit Card or electronically transfer it to another bank.

Nouri has partnered with European crypto and banking company Vivid Money GmbH to provide access to crypto services to its former customers following the shutdown. Former Nuri Exchange customers visiting Vivid benefit from an exclusive Vivid “Prime” membership.

Trading will be available on Noori App till November 30, 2022.

Nouri faced a liquidity crunch following the collapse of the TeraUSD stablecoin ecosystem and the Celsius meltdown in the second quarter of 2022. It filed for bankruptcy in a Berlin court on August 9, 2022, and soon after, it worked with bankruptcy agents. Develop a restructuring plan.

After not finding a willing buyer with enough liquidity to weather the current bear market, including existing shareholders, it decided to close its doors.

In a company blog post on October 18, 2022, CEO Christina Walker-Mayer thanked customers for their loyalty. “Thank you to our customers for your trust and support from day one. You were the reason we started this product. Your participation and constant feedback were our key drivers to continually challenge the status quo and upgrade your experience. It makes us really sad that we will not continue this journey together. ,

Founded in 2015, Noori has raised 42.3 million euros from eight funding rounds, the most recent of which took place in June 2021.

Nouri offered customers the ability to lend bitcoins and earn up to 3% per year in interest, which could be paid weekly. Unfortunately for the company, it introduced this product through a partnership with Celsius Network, the crypto lender that halted withdrawals in June 2022, and was at the center of the prevailing credit transition at the time.

At press time, Celsius is awaiting auction of its assets to pay off creditors’ dues.

“Above all, the bankruptcy of one of our main business partners has made things worse and left us on edge,” Walker-Mayer said. According to the CEO, the bankruptcy of Nouri Exchange does not affect anyone wishing to make a claim against Celsius. Customers wishing to make such claims should check that their names are not listed on page 92 of this document before filing an independent claim.

Noori becomes victim of credit contagion

Noori has become the latest crypto company to be associated with a network of interconnected lending that fell like a pack of cards between May and June 2022.

Following the collapse of the TeraUSD stablecoin and its sister coin LUNA in May 2022, Singapore hedge fund Three Arrows Capital lost at least $200 billion from its investment in LUNA and is now a court-appointed liquidator following the first bankruptcy filing. is undergoing liquidation by Teneo.

Toronto-based Voyager Digital, a crypto broker, filed for bankruptcy in July 2022 after it lost more than $600 million in debt to Three Arrows. It expects to partially pay its customers through the proceedings of the Three Arrows liquidation.

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