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Crypto Firm Juno Urges Users to Withdraw After ‘Uncertainty’ with Custody Partner

Due to “uncertainty” regarding the future of Wyre, the platform’s crypto custody provider, Juno advised users to withdraw their assets.

Because of “uncertainty” over its crypto custodian partner Wyre, Juno, a supplier of fiat-to-crypto on-ramp solutions, has advised its users to sell or self-custody the cryptocurrency on its platform.

The company clarified in a tweet on January 4 that it relies on its “crypto partner” for those services and does not keep any cryptocurrency belonging to its users.

In a statement, the company stated, “Due to uncertainty with our crypto partner, we have taken preventive action in the interest of our consumers,” and added that it is aggressively contacting customers to ask them to assume control of their own assets.

It is believed that Wyre, a licensed money service business in the United States, is the “crypto partner” in question.

According to reports, Wyre CEO Ioannis Giannaros told staff that the company “will need to unwind […] over the next couple of weeks” earlier this week.

Giannaros said in the email obtained by Axios that the company was “still running” but that it will be “cutting back to plan our next steps.”

According to the most recent tweet from Juno, the platform still has $1.25 million worth of cryptocurrency assets, and the company has been contacting users to urge them to take custody of their holdings themselves.

Additionally, Juno protects users by temporarily blocking cryptocurrency purchases on its platform and converting stablecoins into US dollars so that they may be deposited into government-backed accounts that are “FDIC Insured up to $250,000 via our partner bank.”

Additionally, it boosted the daily withdrawal caps for all “metal” account holders, the highest tier account, by five times.

When Cointelegraph contacted Juno for a comment, no one responded right away. Multiple inquiries for comment to Wyre went unanswered.

Users of Juno appeared to be able to withdraw money without any problems as of the time of writing, and the platform asserted that its non-crypto services were also unaffected.

Although Juno stated that it would “transition to a new crypto partner,” it has not yet specified who that partner will be or when the transition will be complete. It also stated that it was attempting to “resume as quickly as feasible” crypto purchases and deposits.

 

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