Wyre hopes that the additional capital "will help us continue to deliver on our mission" — but it remains unclear whether users will want to join them for the ride.
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When crypto projects freeze or limit withdrawals, it's normally a warning sign that a bankruptcy is imminent.
However, a Twitter update from Wyre suggests that this isn't always the case.
The crypto payments platform had spooked users by announcing that they would only be able to withdraw 90% of their balances — amid reports that a shutdown was imminent.
But in a new update on Thursday, Wyre revealed that it has now received financing from a strategic partner — meaning that its operations can return to normal. A statement added:
"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."
Wyre hopes that the additional capital "will help us continue to deliver on our mission to simplify and revolutionize the global financial ecosystem" — but it remains unclear whether users will want to join them for the ride.
Earlier this week, a now-deleted post from one of its technical engineers had suggested that "Wyre won't continue as a profitable business."
And according to Axios, a top executive 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."
Ioannis Giannaros — who has now made the switch from CEO to executive chairman — failed to comment on a potential shutdown to the publication, but added:
"We're still operating but will be scaling back to plan our next steps."
