Wyre Lifts 90% Withdrawal Cap Following Lifeline Funding
Wyre announced that it had received funding from a strategic partner.
The platform has recently lifted withdrawal limits following a bankruptcy concern.
Wyre has lost significant business partners as a result of a liquidity crisis.
Crypto payments company Wyre announced that it has received funding from a strategic partner. This will allow the company to lift the withdrawal limit that was set last week.
Due to market difficulties, the company notified users last week that they could only withdraw a maximum of 90% of their account balance. Meanwhile, the industry was hoping for Wyre's possible shutdown.
Wyre was hunting for Strategic Financing
Wyre CEO Ioannis Giannaros previously noted that the company is still in operation but will be reducing operations. After the announcement, the company claimed that it is investigating possible options to help it deal with the current crypto market challenges.
As per the most recent update, the platform will continue to operate as usual. It stated: “As a licensed financial institution, we are proud that we were able to continue providing our services in a safe and sound manner without suspending withdrawals. We will continue accepting deposits and remove the 90% withdrawal cap immediately.”
Platform Experiences Financial Losses
Wyre is one of Ledger's four trading partners. However, Wyre is no longer listed as a partner on Ledger's website. In November, Twitter user KAI claimed that the site withheld significant payments, signaling a liquidity issue.
Earlier this month, several crypto companies distanced themselves from Wyre's services. Due to the uncertainty surrounding platform withdrawals, Juno Finance increased withdrawal limits while recommending that users switch to self-custody.
In addition, the company recently reported a change in its management structure. Stephen Cheng, Chief Risk Officer & Chief Compliance Officer, will serve as interim CEO, with Ioannis Giannaros retaining the executive chairmanship.
Wyre is one of several businesses that are currently struggling. As a result of FTX's collapse, the industry has continued to experience lower profitability along with job layoffs amid the ongoing bear market.
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