Crypto agency Juno urges customers to withdraw after ‘uncertainty’ with custody companion

Savvyzine January 5, 2023



Fiat-to-crypto on-ramp resolution supplier Juno has urged its customers to promote or self-custody the crypto on its platform citing “uncertainty” with its crypto custodian companion Wyre.

In a Jan. 4 tweet, the platform defined it that it would not maintain any of its buyer’s crypto, and depends on its “crypto companion” for these companies.

“As a result of uncertainty with our crypto companion, we’ve taken preemptive motion within the curiosity of our clients,” it wrote, including it’s additionally actively reaching out to clients to ask them to self-custody.

The “crypto companion” in query is known to be Wyre, a regulated Cash Service Enterprise in the US.

Earlier this week, Wyre CEO Ioannis Giannaros reportedly informed workers that the agency “might want to unwind […] over the following couple of weeks.”

Within the electronic mail seen by Axios, Giannaros stated the agency was “nonetheless working” however could be “scaling again to plan our subsequent steps.”

Juno in its newest Twitter thread stated there was nonetheless $1.25 million value of crypto belongings held on the platform and it has been reaching out to clients to encourage them to self-custody their holdings

Different safeguards employed by Juno for customers embody quickly disabling crypto shopping for on its platform and changing stablecoins to U.S. {dollars} into customers’ government-insured accounts “that are FDIC Insured as much as $250,000 by way of our companion financial institution.”

It additionally elevated day by day withdrawal limits five-fold for all “steel” account holders, its highest tier account.

Cointelegraph contacted Juno for remark however didn’t obtain a direct response. Wyre didn’t reply to a number of requests for remark.

Associated: US federal companies launch joint assertion on crypto asset dangers and protected practices

On the time of writing, Juno customers had been seemingly capable of withdraw funds with out concern and the platform claimed its companies unrelated to crypto had been equally unaffected.

Juno stated it plans to “transition to a brand new crypto companion” however is but to launch data on what companion and when the transition can be finalized. It added it was working to restart crypto shopping for and deposits “as quickly as doable.”