Wyre Payments, a San Francisco-based crypto payments firm, will implement withdrawal limits for user accounts, it said in a Twitter statement on Jan.7.
See related article: US prosecutors, SEC probes Digital Currency Group: report
Fast facts
- The company will limit withdrawals to a maximum of 90% of funds currently in each customer account. Withdrawals will also be subject to current daily limits.
- According to Wyre’s website, there are daily withdrawal limits set at 5 Bitcoin, 50 Ethereum, and 20,000 in either USDC, DAI, or Wrapped Ethereum (WETH). Withdrawals in fiat are limited to US$150,000 and €140,000 per day.
- Wyre said its latest move is “in the best interest of its community” and that the company is “exploring strategic options to navigate the current market environment.”
- The announcement follows reports that Wyre would be shutting operations by the end of January, amid the broader crypto market downturn following the fall of FTX.
- Cryptocurrencies have taken a major hit in recent months following the collapse of Sam Bankman-Fried’s cryptocurrency exchange empire FTX in November, which has prompted crypto investors to leave centralized crypto platforms in droves.
- Cryptocurrency-focused conglomerate Digital Currency Group (DCG) suspended redemptions and new loan originations for its crypto company Genesis Global Capital at the end of last year. This week, DCG announced it will shut its wealth management unit called HQ.
- In April last year, Wyre was nearly acquired by one-click checkout provider Bolt for US$1.5 billion, but the deal fell through in September.
See related article: Crypto exchange Huobi latest firm to slash staff: Reuters