On January 8, crypto payment company Wyre announced that it was “changing its withdrawal policy.” This step adds a withdrawal limit of no more than 90% of the funds in clients’ accounts. In other words, Wyre users can’t completely drain their accounts.
There are additional withdrawal limits of 5 BTC and 50 ETH per day, and cash withdrawal limits, but most cryptocurrency exchanges have level limits.
The move signals growing concerns about bankruptcy and a possible liquidity crunch if nervous customers want their money back quickly. It can also lead to a bout of withdrawals that may lead to more restrictions being imposed.
Hey Wyre community, we’d like to give you an update on the current state of Wyre.
– Weary (sendwyre) January 7, 2023
Wire on the Wire
Wire added that it has also struggled through an extended crypto winter, which was exacerbated by several high-profile crashes in 2022.
“Working for the benefit of our community is our highest priority, and we are exploring strategic options for our company that will enable us to navigate the current market environment.”
There has also been a small change in executive management with Yanni Gianaros stepping down as CEO. He will take over as CEO, with Stephen Cheng, Chief Risk Officer and Compliance Officer, as acting CEO, according to the company.
Wyre has also spun off from leading cryptocurrency wallet provider MetaMask. On January 6, MetaMask posted an update that the platform had been removed from its mobile pool, adding, “Please do not use Wyre.”
Please note – Wyre has been removed from our mobile aggregator. Please do not use Wire.
We are currently removing the extensions and appreciate your patience.
Transak, MoonPay, and Sardine (US only) are still available on Apple Pay, cards, and bank transfers
– a dead worm (MetaMask) January 5, 2023
As reported by Axios earlier this month, Wyre told employees it was closing. Then CEO Gianaros said:
“We will continue to do everything we can, but I want everyone to prepare for the fact that we will have to wind down operations in the coming weeks,” he said.
Fintech company Bolt acquired Wyre for $1.5 billion in April 2022.
Crypto Market Update
Cryptocurrency markets are a rare sea of green during the Asian trading session on Monday morning. Total capital increased by 3.3% over the past 24 hours to $884 billion.
This is the highest rate of trading in the market since mid-December, but the zoom out shows that things are still limited.
Bitcoin crossed $17k with a daily gain of 2%, while Ethereum is up 3.7% crossing $1,300 at the time of writing.
The Crypto Payments Platform Wyre Faces Withdrawal Limits post appeared first on CryptoPotato.