Juno is advising users to withdraw funds from the platform amid "uncertainty" over the fate of its cryptocurrency custody provider Wyre.
Fiat-to-crypto on-ramp solution provider Juno is urging its users to sell or self-custody cryptocurrencies on its platform, citing “uncertainty” over its crypto custody partner Wyre. In a Jan. 4 tweet, the platform explained that it does not hold any of its customers’ cryptocurrencies, but instead relies on its “cryptocurrency partners” to provide these services.
"Due to uncertainty around our cryptocurrency partners, we have taken pre-emptive action on behalf of our clients," it wrote, adding that it was also actively reaching out to clients to ask them to self-regulate. It is understood that the "cryptocurrency partner" is Wyre, a regulated money services company in the United States.
Earlier this week, Wyre CEO Ioannis Giannaros reportedly told employees via email that the company "will need to relax over the next few weeks". Giannaros told Axios that Wyre is "still operational" but will be "scaled down to plan our next move".
In its latest Twitter post, Juno said it still has $1.25 million worth of crypto assets on the platform, and that it has been reaching out to customers to encourage them to self-custody their holdings.
Other protections Juno has adopted for users include temporarily banning cryptocurrency purchases on its platform, and converting stablecoins into U.S. dollars in users’ government-insured accounts, “which are FDIC-insured for up to $250,000 through our partner banks.”
It also increased the daily withdrawal limit by five times for all holders of "Metal" accounts, its highest tier of accounts. A spokesperson for Juno told Cointelegraph that it is “swiftly” selecting a new cryptocurrency custody partner, but “has not selected any partners so far.” “Once we select a cryptocurrency partner, we start with cryptocurrency deposits and purchases,” the spokesperson said. Wyle did not respond to multiple requests for comment.
At the time of writing, Juno users appear to be able to withdraw funds without issue, and the platform claims that its cryptocurrency-agnostic services are similarly unaffected.
