The San Francisco-headquartered crypto payments firm resumed withdrawals days after capping the outbound transactions at 90%.
Wyre confirmed that receipt of fresh funding from a strategic partner allowed the firm to restore withdrawals after the previous week’s limit.
Implementing Caps on Withdrawal
Wyre imposed withdrawal limits on user accounts, citing the need to prioritize the community’s best interest. In addition, Wyre implemented a daily limit to avoid bank runs that had drained other crypto firms.
The crypto payment firm declared that its current chief executive would swap roles and serve in another capacity. His exit from the helm would allow Stephen Cheng to assume the chief executive role in an interim capacity.Cheng is lauded for his contribution while serving as the firm’s chief risk and compliance officer.
Fresh Capital Injected by Strategic Partner
The news of the fresh injection, as conveyed via the firm’s Twitter post, appreciated the additional capital since it will facilitate Wyre’s corporate mission. The tweet added that the capital would expedite the revolutionizing of its financial ecosystem. The Twitter post was noncommittal on the identity of the strategic partner.
Established in 2013, Wyre history features a hectic journey worsened by the prevailing crypto winter. The firm saw the proposed $1.5 billion acquisition bid by Bolt rescinded. The failure of the online payment firm to proceed with the September bid portrayed Wyre negatively.
Although the two entities would enter into a commercial agreement requiring Bolt to integrate several of Wyre’s solutions into the customer unit, the damage was already inflicted by the canceled acquisition.
Uncertainty in Wyre’s Future
Barely a week into 2023, Wyre’s chief executive Giannaros reportedly sent an email to the employees warning of a looming shutdown. The leaked email indicating the firm was mulling liquidation triggered pessimism about the firm’s going concern.
While the outgoing chief executive downplayed the allegations of Wyre terminating services, the firm is yet to calm the uncertainty over its continued existence.
Giannaros dismissed the allegations in a follow-up email that indicated the firm would retain operations though would scale back as it transitioned to the next phase.
Days later, MetaMask would declare the removal of Wyre, the platform’s aggregator, on January 6. Even with the bumpy ride, the anonymous strategic partner is not deterred from keeping Wyre afloat through fresh capital injection.
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