Crypto firm Juno Finance has increased withdrawal limits and asks users to switch to self-custody. Meanwhile, industry rumors are that its custody partner Wyre could soon be closing its doors.
The platform said, “Due to uncertainty with our crypto partner, we have taken preemptive action in the interest of our customers.”
Juno Halts Purchases Temporarily
In a Twitter thread, Juno noted, “We strongly recommend withdrawing crypto assets to your self-custody wallet or selling your crypto for cash in your Juno checking account which is FDIC Insured up to $250,000 via our partner bank.”
Meanwhile, the platform states it has increased daily crypto withdrawal restrictions by five times for all metal users. For now, Juno has also temporarily blocked crypto purchases until it switches to a new crypto partner.
Juno stated, “We have temporarily disabled crypto buys on our platform and auto-converted stablecoins (USDC, USDT, mUSDC) to USD in their FDIC-insured checking account. Any fees incurred will be reimbursed.”
Wyre Rumored to be Winding up Business
Juno’s statement follows speculations that its cryptocurrency payments partner, Wyre, could be the newest casualty of the FTX crash. In its most recent article, Axios claimed that Wyre had informed its staff that it was closing the business.
Axios quoted Wyre CEO Ioannis Giannaros stating, “We’ll continue to do everything we can, but I want everyone to brace themselves for the fact that we will need to unwind the business over the next couple of weeks,”
However, Giannaros told Axios via email that the platform is still operating but will be scaling back operations. The company reportedly abstained from commenting about the shutdown reports.
BeInCrypto couldn’t independently verify the report, and inquiries made to Wyre and Ledger remain unanswered as of press time. Meanwhile, Ledger has also paused buying and swapping via Wyre. According to Ledger’s website, Wyre is one of its four swapping partners.
Ledger suggests users use alternatives like CIC, Paraswap, or 1inch instead of Wyre.
According to CoinGecko’s Bobby Ong, a brutal crypto winter pulled Wyre to $0 from its $1.5 billion valuation.
In December, BeInCrypto published a report claiming that Ledger’s partners Changelly and Wyre had frozen significant user funds. Twitter users claimed that Wyre held back large withdrawals since November.
In April 2022, Bolt network announced its definitive agreement to acquire Wyre to integrate API solutions. However, in September, the deal was reportedly called off.
Meanwhile, there is concern about the adoption rate of cryptocurrencies as a result of significant crashes in the market. Apart from the bleeding price action, the FTX meltdown has further hampered web3 investment and sponsorship deals.
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