Crypto firm Juno urges users to pull out after uncertainty with custodial partner

[ad_1]

On-ramp Fiat-to-crypto solution provider Juno has urged its users to sell or hold crypto on its platform themselves, citing uncertainty with its crypto custodian partner Wyre.

In a January 4 tweet, the platform explained that it does not hold any of its crypto clients and relies on its crypto partner for these services.

Due to the uncertainty with our crypto partner, we have taken preventive measures in the interest of our clients, he wrote, adding that he is also actively reaching out to clients to ask them to self-guard.

2/ Juno as a platform does not custody crypto assets and relies on our crypto partner for these services.

Due to the uncertainty with our crypto partner, we have taken preventive measures in the interest of our customers.

— Juno (@JunoFinanceHQ) January 4, 2023

The crypto partner in question is believed to be Wyre, a US-regulated money services firm.

Earlier this week, Wyre CEO Ioannis Giannaros reportedly told employees the company will have to relax […] over the next few weeks.

In the email seen by Axios, Giannaros said the company was still operating but would be winding down to plan our next steps.

Juno said in its latest Twitter thread that there are still $1.25 million in crypto assets held on the platform and it has reached out to customers to encourage them to keep their holdings themselves.

Other safeguards used by Juno for users include temporarily disabling the purchase of crypto on its platform and converting stablecoins to US dollars in government-insured user accounts that are FDIC-insured until to $250,000 through our partner bank.

It has also increased the daily withdrawal limits for all metal account holders by five times, its highest tier account.

Cointelegraph contacted Juno for comment but did not receive an immediate response. Wyre did not respond to multiple requests for comment.

Related: US Federal Agencies Issue Joint Statement on Crypto Asset Risks and Safe Practices

At the time of writing, Juno users were apparently able to withdraw funds without issue, and the platform claims that its non-crypto related services were also unaffected.

Juno said it plans to move to a new crypto partner but has yet to release information on which partner and when the transition will be finalized. He added that he was working to restart crypto buying and deposits as soon as possible.

[ad_2]