This crypto startup was worth $1.5 billion. It is now closing

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In April 2022, crypto startup Wyre was in the midst of a tech boom, having agreed to be acquired for $1.5 billion. The acquisition would have represented a boon of 267 million dollars for one of its founders.

But the acquisition was called off in September.

Employees received worse news on Friday: They were told by email that the company was closing because nearly all of its employees were laid off, according to a former employee with direct knowledge of the matter.

Wyre did not respond to emails seeking comment, but CEO Ioannis Giannaros told Axios via email that the company is “still operating but will scale back to plan our next steps.”

Wyre was founded in 2013 in San Francisco and has raised more than $55 million from a group of primarily cryptocurrency-focused investors like Pantera Capital, Stellar Development Foundation, Kraken, and Boost VC, according to data from PitchBook.

The company’s most successful product has been an on-ramp to buying cryptocurrencies. It offered the ability to use a credit card to purchase cryptocurrencies from the popular Metamask Ethereum wallet.

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Last year, the company was happy with its prospects, the former employee said. Its main competitor, MoonPay, had just raised a $555 million Series A round, valuing the company at $3.4 billion.

After the collapse of the $1.5 billion acquisition by one-click payment company Bolt, Wyre sought out other White Knights but turned down the offers, said another person who worked at a company that offered to acquire Wyre.

Layoffs and high employee attrition followed. The current cryptocurrency fundraising atmosphere, fueled by the implosion of FTX and plummeting cryptocurrency prices, likely prevented Wyre from raising new capital, the former employee said.

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