Juno is asking users to self-custody funds deposited on the platform or sell them for cash after main custodian partner Wyre announced that it was shutting down operations. The fiat-to-crypto on-ramp has increased daily limits to help customers withdraw their assets.
In a Twitter thread, crypto banking startup Juno urged customers to sell or withdraw their assets on the platform after citing uncertainty with its custodian partner Wyre. The company claimed that it does not hold customer assets and instead relies on partner banking and custodial firms to handle the funds on its behalf.
Juno has temporarily disabled all crypto purchases on the platform and “auto-converted” stablecoin balances in USDC, USDT and mUSDC to US dollars in their FDIC-insured (Federal Deposit Insurance Corporation) checking accounts. The company which launched in 2021, partnered with Evolve Bank and Trust to offer U.S customers with checking-account services that pays them yield rewards on their crypto deposits.
The fiat-to-crypto on-ramp is recommending users to withdraw assets to a self-custody wallet or sell them for cash in their Juno checking account. To help customers, Juno has increased daily crypto withdrawals limits from $40,000 (£33,175) to $200,000 (£165,876), monthly limits from $155,000 (£128,554) to $500,000 (£414,691), and yearly limits from $500,000 to $1,500,000 (£1,244,073).
However, the neo-bank has stated that its banking and card services, which allows users to pay for goods and services at partner stores using fiat or crypto, is not affected and will continue to operate as usual. 24-hours after the announcement was made, only $1.25 million (£1,036,727) worth of crypto remains on the platform.
The move came after Wyre, a crypto payments solution provider and Juno’s main custodian partner, announced on January 4 that it was winding down operations. In an email sent to employees, CEO Loannis Gainnaros wrote that staff must be prepared for layoffs as the company “will need to unwind the business over the next couple of weeks”.
Last April, the crypto payments firm founded by Giannaros and Michael Dunworth reached an agreement with “one-click” checkout firm Bolt to be purchased in a $1.5 billion deal that was at the time considered the largest non-SPAC acquisition of a crypto company. However, the deal which was supposed to be completed in stocks and cash collapsed in early September and days later, Dunworth stepped down from his role at Wyre. Maju Kuruvilla, the CEO of Bolt, said at the time that both companies will continue to work as commercial partners and Bolt will integrate Wyre’s crypto-enabled protocol into its ecosystem.
In response to an email sent by media outlet Axios, Giannaoros said that Wyre will continue its operations but will be scaling back to “plan the next step”. The CEO did not mention anything about the company winding down.
At the time of writing, customers are able to withdraw their funds without issue from Juno while the company is on the hunt for a new crypto custodian partner. Juno has promised users that it will restart crypto buy and deposit services as soon as the transition is completed.
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