In About-turn, Crypto Payments Platform Wyre Secures Funding
TL;DR Wyre, a crypto payment gateway, announced it has received funding from an unnamed partner that will allow it to lift its 90% withdrawal limit and continue operations. Founder Ioannis Giannaros had previously told employees the firm would need to "unwind" its business after a $1.5 billion buyout fell through.
In a quick reversal, crypto checkout gateway Wyre is removing a recently-imposed withdrawal limit and announced it will continue operations as usual.
Wyre said in a Thursday update that it received funding from an unnamed partner, allowing it to deliver services without interrupting withdrawals.
“We will resume accepting deposits and lift the 90% withdrawal limit effective immediately,” the company said in a Twitter thread.
As a regulated financial insitution, 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 🔊 (@sendwyre) January 12, 2023
Founded in 2013, Wyre provides payment infrastructure for crypto applications and supports services like custody wallets, transfers and swaps, and know-your-customer (KYC) onboarding.
Wyre was added to Visa’s FinTech Fast Track Program in Apr. 2021, allowing Wyre’s users to smoothly move money between crypto and fiat, via new offerings like instant payouts of their crypto into their fiat bank accounts.
Earlier this month, it was believed that Wyre would shut down its business after payments firm Bolt Financial ditched a $1.5 billion deal to buy the firm.
Founder Ioannis Giannaros told employees in an email to “brace themselves for the fact that we will need to unwind the business over the next couple of weeks,” Axios reported on Jan. 4.
However, Giannaros separately told the outlet that it was “still operating but will be scaling back to plan our next steps.”
Crypto wallet providers MetaMask and Brave Software then announced that they would end support for Wyre and warned users not to use the service.
Wyre, once valued at $1.5 billion, sparked further concerns about its business when it tweeted on Jan. 7 that it would limit customer withdrawals to 90% of their asset balance.
Giannaros also stepped down as CEO and taken on the role of executive chairman, while Chief Risk Officer Stephen Change would become interim CEO, the company said.
Wyre didn’t return Blockworks’ request for comment by press time.
“Our operations continue and we will share information with the community as it is available,” the company concluded.