A large crypto bank is missing a lot of money. However, German companies and their customers are also affected. This is likely to be very annoying for many people who had invested their money.
Cryptocurrencies are currently losing enormous value. The American company Celsius Network has lost a billion and many investors are worried about their money. Nevertheless, cryptocurrencies are considered a major innovation in gaming.
However, the bankruptcy of the American company also affects thousands of German users. Because Nuri, a German start-up from Berlin, also deals with cryptocurrencies and has so far worked closely with Celsius. But that company is now bankrupt. The insolvency of Celsius Network also affects the money that Nuri’s customers had invested.
Those with a “Bitcoin yield account” from Nuri can lose a lot of money
Who is Nuri and what does the company do? According to FinanceFwd, Nuri (formerly Bitwala) is a banking frontend based on the license and infrastructure of Solarisbank. For about a year, Nuri facilitated, in addition to the normal partner operations for Solarisbank, so-called “Bitcoin yield accounts” for Celsius Network.
Nuri connected customers who wanted such a yield account with Celsius Network. The customer then concludes a contract with Celsius regarding the yield. Celsius then uses the money to lend it to other users. So you don’t enter into a contract with Nuri or with Solarisbank, but with Celsius Network. And that makes it complicated when it comes to missing amounts now.
Besides the cooperation with Celsius Network, Nuri also conducts normal banking business, which is based on Solarisbank. Although your account shows Nuri, you are using the infrastructure of Solarisbank.
What is the problem now? Celsius Network has filed for bankruptcy in the USA and froze payments several weeks ago. Customers using the yield account from Nuri currently cannot access their money. Because the money is neither with Nuri nor with the parent company Solarisbank.
How many people in Germany are affected? This is still unclear. Celsius has also frozen millions of euros from Nuri. Nuri has about 500,000 customers according to its own statements. The CEO of Nuri, Kristina Mayer-Walcker, explained in a conversation with FinanceFwd that only “a fraction” of the customers are affected by the problems.
It cannot be said with certainty how many are ultimately actually affected by Celsius’s bankruptcy. Because Nuri also has normal bank accounts in its portfolio, which run through Solarisbank’s offering. These are not affected by the Celsius bankruptcy, as they should also benefit from the deposit protection of Solarisbank.
We contacted Nuri and requested a statement. If we receive a statement, we will update this news.
Cryptocurrencies always carry a risk for those who want to use them
Why do many users invest in cryptocurrencies? Cryptocurrencies and NFTs are currently a big trend in gaming. Many publishers and developers are relying on such currencies or are introducing pay-to-earn mechanics as in some MMORPGs: You play an MMORPG and earn a currency that you can then convert into real money.
Especially in countries where salaries are very low, or it is very dangerous for many people to go out, pay-to-earn mechanics are often used to provide a small income. In our podcast on MeinMMO, we also talked about whether such money could ruin gaming.
What is the problem? Cryptocurrencies are strongly affected by fluctuating rates. Therefore, many users point out that you should never bet your entire wealth or income on such sources. Because the risk is great enough that in the end everything could be gone, as there are no securities and the rates are not fixed.
Nuri itself writes on its website and warns of the risks:
Trading in cryptocurrencies involves a high risk and can lead to a total loss of the invested capital. We strongly recommend investing only as much as you can afford to lose completely. Before you start trading cryptocurrencies, please ensure that you fully understand the risks involved.
What happened now? The Bitcoin has lost almost 50% of its value in the last 6 months: While a Bitcoin was worth nearly 40,000 euros in January 2022, the current value (as of July 19, 2022) is 21,600 euros. This is disastrous for companies like Celsius Network, where the assets are based on such currencies. This also applies to many private individuals: Anyone who bought a Bitcoin for 40,000 euros in January 2022 now has only half of that value left.
Other people have also lost a lot of cryptocurrencies. A game relied on so-called NFTs to provide an incentive for users. The game had some similarities with the Pokémon franchise: The focus was on trading and breeding creatures. But now hackers stole cryptocurrencies worth 550 million euros:
Hackers steal €550 million from NFT game – Pokémon-like game was unfortunately too successful
