Crypto firm Juno urges users to withdraw their funds

  • Juno asked their customers to pull out their funds as soon as possible
  • The partner firm will unwind in the next couple of weeks

Crypto banking firm Juno had asked their customer to redeem or sell their funds from the platform, mentioning uncertainty with its crypto custodian partner Wyre.

On 4 January 2023, the crypto banking firm spelled out that it doesn’t hold any of its users’ crypto. Furthermore, it depends on its crypto custody partners for that particular assistance.

In addition, the company temporarily disabled crypto purchases from their platform and auto-conversion stablecoins to USD in their FDIC-insured account. Initially, any fees sustained will be reimbursed.

Juno provides checking accounts with integrated bitcoin and ETH crypto wallets for users. The co-founder of Juno stated that the company is switching custodians—the reason is potential issues with Wyre—they might be scaling back.

Is Wyre shutting down?

Wyre, the crypto payments company once valued at $1.5 billion—-told employees that it is shutting down reason is yet another crypto crash and the broad market slump.

The CEO of Wyre, Ioannis Giannaros, stated that the company would do every possible thing to stay afloat. Still, in the next couple of weeks, the company needs to unwind the business—clearly, the firm wants its employees to prepare themselves for the next move. In addition, the firm is still operating inspite the company’s scaling back to plan the next step.

On September 2022, the Bolt was one step away from acquiring Wyre and agreed to buy for about $1.5 billion back. The deal was expected to be completed in cash and moreover in stocks. The deal was examined as the largest non-SPAC acquisition of a crypto company where both companies agreed to continue their partnership as independents. 

However, rising doubts about Bolt’s one-click checkout business model led to disagreement between the two parties.

What about the funds and Juno’s next step?

The crypto banking firm Juno mentioned that the platform still had $1.25 million worth of crypto assets. Juno users were evidently able to withdraw funds without any issue or interruption. It also increased the overall daily limit five times for its highest-tier accounts.

Juno motivates users to spend crypto on everyday transactions. Juno card, where users can transact with stablecoin USDC. Adding that all their banking services are unaffected and continue to operate as usual without any interruption.

The crypto banking platform is planning to create a new crypto partner, which isn’t identified yet and restart crypto buying and deposits as soon as possible.