Wyre Restricts Withdrawals Amid Reports It Will Shut Down Imminently
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Wyre Restricts Withdrawals Amid Reports It Will Shut Down Imminently

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Created 1yr ago, last updated 1yr ago

A since-deleted LinkedIn post from one of its technical engineers suggested that "Wyre won't continue as a profitable business."

Wyre Restricts Withdrawals Amid Reports It Will Shut Down Imminently

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A crypto payments platform has announced that it's limiting withdrawals at 90%, amid reports that a shutdown is imminent.

In an update posted over the weekend, Wyre said the amended policy would be subject to daily withdrawal limits — leaving users rushing to gradually pull most of their funds from the site. The statement added:

"Acting in the best interest of our community is our top priority, and we are exploring strategic options for our company that will enable us to navigate the current market environment and deliver on our mission to simplify and revolutionize the global payments ecosystem."

It was also revealed that Ioannis Giannaros is making a switch from CEO to executive chairman, while chief risk officer and chief compliance officer Stephen Cheng is stepping up to become chief executive on an interim basis.

All of this comes after a since-deleted LinkedIn post from one of its technical engineers suggested that "Wyre won't continue as a profitable business."

And according to Axios, Giannaros wrote an email to staff that said:

"We'll continue to do everything we can, but I want everyone to brace themselves for the fact that we will need to unwind the business over the next couple of weeks."

That report suggested some employees are fearful they'll receive no severance whatsoever.

Giannaros did not comment on a potential shutdown when approached by Axios, but said:

"We're still operating but will be scaling back to plan our next steps."

All of this marks a staggering reversal of fortunes for Wyre.

It had hit the headlines last April after the one-click checkout company Bolt unveiled plans to snap up the company for $1.5 billion. But just five months later, the plans were hastily abandoned — with both businesses agreeing to remain as independent entities.

Some have raised fears that Wyre's attempt to restrict withdrawals will only make matters worse. Cybersecurity expert John Reed Stark tweeted:

"A desperate @sendwyre just put a bandaid on a severed limb. Frenzied customers will run to withdraw which will then trigger more restrictions, which will then trigger more runs until only carnage remains. Bank-run hysteria cannot be mitigated or mollified."

Others warned that this could be a huge setback for the adoption of cryptocurrencies as an everyday payment method, given how Wyre had offered on-ramps and off-ramps for the likes of OpenSea and MetaMask.

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