Crypto payment platform Wyre modified its withdrawal policy to limit users from cashing out up to 90% of their assets, just days after two former employees allegedly hinted at the possibility of a shutdown.
On Jan. 8, crypto payments company Wyre announced that it was “changing its withdrawal policy.” The move increases the withdrawal limit to no more than 90% of funds in customer accounts. However, Wyre users cannot completely delete their accounts. There are additional withdrawal limits of 5 BTC and 50 ETH per day, as well as fiat withdrawal limits, however most cryptocurrency exchanges have tiered limits.
The move reflects growing concerns about bankruptcy and a potential liquidity squeeze as nervous customers rush to get their money back. It could also trigger a withdrawal rush that could lead to further restrictions.
Following the resignation of Yanni Giannaros as CEO, there were also some management changes. He will assume the role of executive chairman, while chief risk and compliance officer Stephen Cheng will serve as interim CEO, according to the company.
Wyre also parted ways with leading crypto wallet provider MetaMask. MetaMask released an update stating the platform has been removed from their mobile aggregator, adding, “Please do not use Wyre.”
Wyre is a regulated Money Services Business (MSB), which means it is a financial services provider licensed to transfer and exchange money. The company can look back on almost ten years of history since it was founded in 2013. Wyre offers what the company calls a secure and compliant bridge between fiat and cryptocurrencies.
It serves as an infrastructure provider for blockchain companies to connect to the fiat economy. In other words, Wyre Payments enables blockchain companies to efficiently integrate highly customizable fiat onramps into their onboarding processes. According to the company, the integration costs are also very low compared to most of its competitors.