Crypto payments firm Wyre announced on Friday that it is set to wind down operations, after nearly a decade in the business. “Due to market conditions, we made this decision to protect the best interest of our key stakeholders and customers,” the company said in a Twitter post. The decision was not a result of regulatory agency direction, and Wyre continues to secure customer assets.
The crypto payments firm will process withdrawals normally until July 14th. Users will need to enter a separate process to recover assets after that date, with further details to be provided on their blog later.
In a contrasting turn of events, just last year, online payment provider Bolt had attempted to acquire Wyre for $1.5 billion. That acquisition would have been the largest non-SPAC acquisition of a crypto firm at the time. However, the deal fell apart only a few months later.
In January, Wyre CEO Ioannis Giannaros informed employees via email that he planned to liquidate the company and terminate services that month. Giannaros later downplayed the shutdown allegations in another email, stating, “We’re still operating but will be scaling back to plan our next steps.”
Not long after, the company announced withdrawal limits, claiming that it was in “the best interest of our community.” Users were allowed to withdraw only 90% of their funds, though the limit was lifted less than a week later.
Wyre named Stephen Cheng as its permanent CEO in April, after serving as interim CEO for a brief period. The company also announced the relaunch of its partnership withMetaMask.
The closure of Wyre raises questions about the future of crypto payment firms and related infrastructure. While the company’s shutdown comes as a result of market conditions, it is a stark reminder of the uncertainties that still surround the crypto industry.
Regarding customers’ assets, the firm’s assurance of continuing to secure them comes as a relief amidst the tough decision to wind down. The crypto community will undoubtedly be following closely as Wyre shares further details, particularly concerning the separate process for asset recovery after July 14th.
As Wyre’s closure marks the end of an era for a pioneer in the crypto payments space, it may also pave the way for new, innovative market entrants that could better weather market conditions. However, only time will tell if they are just as committed to their customers’ best interests.
Source: Decrypt
