San Francisco-based cryptocurrency payments company Wyre is announcing its closure after nearly a decade in operation, attributing the decision to the financial difficulties posed by the prolonged bear market rather than any regulatory constraints imposed by authorities in the United States.
In a blog post released on June 16, the company acknowledged its challenging choice, emphasizing that it was taken to safeguard the best interests of its primary stakeholders and customers. Wyre assured users that their assets would remain secure throughout the wind-down process, offering them the opportunity to withdraw funds via the Wyre platform until Friday, July 14th. Subsequently, a separate procedure would be established to facilitate the recovery of any remaining assets.
Furthermore, Wyre mentioned exploring the possibility of selling its assets, including those of its subsidiaries. Interested parties were advised to contact 88 Partners for further information.
Reports indicate that Wyre has faced significant struggles ever since Bolt, a one-click checkout company, terminated its plans to acquire Wyre for $1.5 billion in September 2022. A few months later, trouble escalated when Juno, a fiat-to-cryptocurrency on-ramp provider, urged its users on January 4th to transfer their crypto assets off the Juno platform and assume self-custody due to perceived uncertainty surrounding Wyre, its custodial partner.
The situation worsened when MetaMask, a popular cryptocurrency wallet, terminated support for Wyre’s payment services due to the same concerns. Shortly afterward, Wyre imposed a 90% withdrawal limit for all users, only to lift it on January 13th after securing financing from an undisclosed strategic partner, indicating a potential recovery.
However, i is worth noting that Wyre reportedly laid off 75 employees in January, highlighting the challenges it faced. Unfortunately, Wyre now joins the growing list of cryptocurrency and blockchain firms that have succumbed to the persistent bear market. In May, several notable entities such as Unbanked, BottlePay, HotBit, Terressa, and TradeBlock had to shut down due to the adverse conditions of the crypto winter.
Despite its closure, Wyre’s commitment to securing customer assets and its transparent communication regarding the winding-down process reflects the company’s dedication to fulfilling its obligations to its users and stakeholders. The crypto industry remains volatile, and the recent wave of closures serves as a reminder of the challenges companies face within this rapidly evolving landscape.
