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Following reports that crypto payments firm Wyre was shutting down operations, CEO Ioannis Giannaros offered a conflicting story, stating that the firm was merely “scaling back.” Wyre has now announced that it is “modifying” its withdrawal policy, citing the downturn in the crypto industry and the “macroeconomic climate” as factors that have affected the company. On Friday, Wyre stated that it is now “exploring strategic options.”
Three days ago on January 4, Bitcoin.com News reported that crypto payment firm Wyre shut down its operations. The news followed the failure of the $1.5 billion Bolt buyout deal and the departure of co-founder Michael Dunworth, stepping down from his role at the company. On January 6, Wyre published a community update that addressed speculation about the company.
“We have not been immune to the challenges of the current macroeconomic climate and recent events that have shaken the crypto industry,” Wyre explained on Friday. In addition, the company has changed its management structure, with Ioannis Giannaros as executive chairman and Stephen Cheng as interim CEO. In its update, Wyre also announced changes to withdrawals, saying users are now limited in the amount they can withdraw.
“We are changing the withdrawal guidelines. While customers will continue to be able to withdraw their funds, at this time we are limiting withdrawals to no more than 90% of the funds currently in each customer account, subject to applicable daily limits,” Wyre’s update details, noting that “This will best position us to serve and maximize value for our customers and stakeholders.”
The withdrawal issue with Wyre has affected other parts of the crypto industry, as collectibles and candy company Topps emailed customers about the incident and its impact on the non-fungible token (NFT) marketplace. “You may have seen reports that Wyre, a wallet service provider for our secondary marketplace, may be shutting down or reducing operations,” Topps emailed. “We have assessed the situation and as of today Wyre issued an official statement.” Topps added:
In light of this and as a security measure, we are temporarily suspending transactions in the store and marketplace with immediate effect. Rest assured that your collection continues to be safe and secure.
During the second half of 2022, crypto blowouts and failures created a contagion that spread to almost every corner of the ecosystem. Last year, several crypto firms that were believed to be reliable became insolvent. It seems that 2023 will not be able to escape the bad news either.
What do you think about Wyre changing the withdrawal limits? Let us know your thoughts on this topic in the comments section below.
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