Due to ‘uncertainty’ with cryptocurrency custody partner Wyre, fiat-to-crypto solutions provider Juno has advised its users to either sell or self-stash the Bitcoin held on its platform. cryptocoin.comWe have shared Juno’s statements with you.
Descriptions of the cryptocurrency platform
The business made it clear in a tweet on Jan. 4 that it does not store any Bitcoin on behalf of its customers and instead relies on a crypto partner to handle such transactions. The firm has issued a statement stating that they are urging clients to take control of their assets due to the uncertainty with their crypto partners.
1/ Update on @JunoFinanceHQ in the last 24 hours
At Juno, we aim to be the easiest and fastest on and off-ramp for crypto. ~90% of our crypto native users have always used Juno as an on and off-ramp.
Juno offers these services via its banking and crypto partners.
— Juno (@JunoFinanceHQ) January 4, 2023
Wyre, an established US money transfer company, is considered the ‘crypto partner’ Juno is talking about. On January 4, news broke that Wyre was closing and had already started laying off employees. The company’s CEO, Giannaros, claimed that the company is ‘still operational’ but has downsized to consider its next actions.
Juno makes withdrawals easy
Juno still has $1.25 million in bitcoin assets, and the firm reaches out to consumers, encouraging them to claim their funds. To further protect its users, Juno, which recently auctioned off its mutant ape yacht NFT collection, can temporarily suspend cryptocurrency purchases on its platform and exchange stablecoins for US dollars to deposit up to $250,000 into FDIC-insured accounts through a partner bank.
As a bonus, the maximum amount that can be withdrawn per day from top “metal” accounts has been increased by five times. The site claims that its non-crypto services are not affected and users do not report any problems withdrawing funds from Juno. Neither the identity of that partner nor the timeline for its implementation has been disclosed, although Juno says it will ‘switch to a new crypto partner’. He also said he’s working to “continue as quickly as possible” with cryptocurrency deposits and purchases.
Liquidation in January
Juno CEO and co-founder Varun Deshpande says the decision comes as Juno’s current guardian, Wyre, prepares to cease operations in the coming weeks. ‘We’re replacing security guards because we think they can scale up or reduce the scale of potential problems with Wyre,’ Deshpande said in an interview. Juno’s team has already started working with a new principal that he has yet to identify. According to Deshpande, the move of clients’ funds from Wyre to the new custodian will be completed in the coming weeks.
Wyre, once valued at $1.5 billion, has experienced significant headwinds in recent months. In September, one-click payments company Bolt dropped its buyout agreement with the company. Then, in December, Axios reported that Wyre had told employees that it would liquidate and terminate its offerings in January.