Crypto payment provider Wyre limits users to 90% asset withdrawal

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Wyre has changed its policy to allow users to withdraw less than 90% of their assets. Wyre noted that the decision was in the best interest of the community. The company made its chief security officer the interim CEO.

Another Web3 company has officially declared that it is struggling with a liquidity crisis, forcing the company to limit the withdrawal rights of its users. Yesterday on Twitter, Wyre, a global crypto payment platform, announced that it had changed its withdrawal policy to allow customers to only cash out less than 90% of their assets at a time.

We are changing our withdrawal policy. Although clients can continue to withdraw their funds, we currently limit withdrawals to 90% of funds currently in each client account, subject to daily limits in effect.

— Wyre (@sendwyre) January 7, 2023

Additionally, the company noted that the 90% limit was subject to each user’s daily limit, noting that it was in the best interest of the company. Part of the press release said:

We are exploring strategic options for our business that will allow us to navigate the current market environment and fulfill our mission to simplify and revolutionize the global payments ecosystem.

The company also made changes to its management. Its former chief executive, Yanni Giannaros, moved to the position of executive chairman. Similarly, former Wyres chief risk and compliance officer Stephen Cheng became interim CEO.

In recent months, several Web3 companies have gone bankrupt after the implosion of the Terra LUNA projects and the collapse of the former second-largest crypto exchange, FTX.

The LUNA event sparked a wave of insolvency among major crypto firms that previously managed over $10 billion in crypto assets. Celsius Network, Voyager Digital and Three Arrows Capital were among the bankrupt crypto firms.

Seven months after LUNA, FTX’s parent company filed for Chapter 11 bankruptcy protection with more than 120 companies connected. Its founder, Sam Bankman-Fried, was arrested in the Bahamas and then extradited to the United States.

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