Wyre Receives Strategic Funding to Continue Operations

Wyre Removes 90% Withdrawal Cap After Receiving Funding Lifeline

Crypto payments company Wyre announced it has received financing from a strategic partner that will allow it to remove the withdrawal cap imposed last week.

The company told customers they could only withdraw a maximum of 90% of their account balance due to difficulties the business was facing at the time. The industry, meantime, was prepared for Wyre to possibly cease operations.

Wyre was Looking for Strategic Financing

CEO Ioannis Giannaros of Wyre earlier told Axios that the company is still in business but will be curtailing operations.

Following the statement, the firm stated that it is looking into strategic options to help it manage the present market landscape and maintain its worldwide payments network.

According to the latest update, the platform will continue with business as usual. It read: “As a regulated financial institution, we’re proud that we were able to continue delivering our services in a safe and sound manner without pausing withdrawals. We will resume accepting deposits and lift the 90% withdrawal limit effective immediately.”

The platform said that it would keep putting its customers first while resuming expansion.

Platform Loses Business

Wyre is one of the four swapping partners of Ledger. However, Wyre is no longer listed as a partner on Ledger’s website. In Nov., Twitter user KAI alleged that the site withheld substantial payments, implying a liquidity problem. However, the platform was reportedly completing small-value transactions quickly. 

Several cryptocurrency businesses distanced themselves from Wyre’s services earlier this month. Due to the uncertainty surrounding withdrawals from the platform, Juno Finance raised withdrawal limitations while requesting that users switch to self-custody.

Now, the company has reportedly traded Wyre out for digital currency exchange provider Zero Hash. Topps, another collections business, informed its clients that it was evaluating the matter.

The business has also lately disclosed a change in its management structure. Stephen Cheng, the Chief Risk Officer, and Chief Compliance Officer, will take over as interim CEO, while Ioannis Giannaros will continue as executive chairman.

Wyre is one of many businesses struggling currently. As a result of the collapse of FTX, the industry continues to experience decreased profitability along with employee layoffs amid the present bear market. 

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.



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