Crypto Payment Company Wyre Winds Down Due To Market Conditions

Updated: 20 June 2023

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In a recent announcement, Wyre, a prominent San Francisco-based fintech company, revealed its decision to wind down its operations after nearly a decade. The move, driven by market conditions, is aimed at safeguarding the interests of its key stakeholders and customers. The company emphasized that this decision was not prompted by any regulatory agency directives.

Wyre Assures Asset Security and Recovery Process

According to the company blog on June16, Wyre assured its users that their assets would remain secure. The crypto payment company said:

“Wyre continues to secure customer assets. If you have assets on the Wyre platform, you can continue to withdraw them via Wyre’s dashboard until Friday, July 14th. After then, we will have a separate process to recover assets remaining on the platform.”

Following this deadline, a separate process will be put in place to recover any remaining assets on the platform. Wyre promised to release further details about this process on its website and blog, with updates expected to be provided in the upcoming weeks.

After nearly a decade, Wyre is winding down. Due to market conditions, we made this decision to protect the best interest of our key stakeholders and customers. This decision is not due to any regulatory agency direction. Wyre continues to secure customer assets.

— Wyre (@sendwyre) June 16, 2023

The company also stated that it was disposing of its assets. It said:

“If you’re interested in acquiring Wyre’s or its subsidiaries’ assets, please reach out to 88 Partners”

Wyre expressed gratitude to its community for the support they have received and acknowledged the privilege of serving them throughout the company’s journey. Despite the decision to wind down operations, Wyre affirmed its commitment to ensuring the security and proper handling of its customers’ assets until the completion of the winding down process.

Ups and Downs: Acquisition Attempts, Leadership Changes, and Strategic Partnerships

In 2022, the Wall Street Journal reported that the company experienced an attempted acquisition by Bolt for $1.5 billion, which would have been the largest non-SPAC acquisition in the crypto industry at the time. However, the deal ultimately fell through a few months later, leaving Wyre to navigate its future independently.

Earlier this year, in January, Wyre CEO Ioannis Giannaros informed employees via email that the company would be liquidating and intended to terminate its services that same month. However, Giannaros later clarified in a subsequent email that while the company was scaling back, it would continue to operate as it planned its next steps. The initial reports of a complete shutdown were downplayed by Giannaros.

During the following week, Wyre announced the implementation of withdrawal limits, citing the decision as being in the best interest of their community. This meant that users could only withdraw up to 90% of their funds. However, less than a week later, the withdrawal limits were lifted, allowing users to access their full funds once again.

In April, Wyre underwent leadership changes, appointing Stephen Cheng as its permanet CEO after a brief period serving as the interim CEO.

We are thrilled to announce the permanent appointment of Stephen Cheng as Chief Executive Officer of Wyre. Stephen has a long history of using risk and compliance expertise throughout Fortune 100 companies, and will continue to steward us towards growth and expansion. pic.twitter.com/xeYCC9qQ0a

— Wyre (@sendwyre) April 11, 2023

Additionally, the company announced the relaunch of its partnership with MetaMask, a popular cryptocurrency wallet and browser extension. These developments were aimed at strengthening Wyre’s position and enhancing its services.

Unfortunately, despite these efforts, Wyre recently made the decision to wind down its operations. The closure marks the end of a journey that began in 2013 when the company was founded. While specific details regarding the reasons behind this decision have not been provided, it is evident that Wyre has encountered challenges in the ever-evolving crypto industry.

Wyre’s journey, including the attempted acquisition, withdrawal limits, and leadership changes, reflects the dynamic nature of the crypto sector and the need for companies to adapt to changing circumstances. As the company winds down, its focus will likely shift towards ensuring the proper handling of customer assets and fulfilling its obligations to stakeholders.

The closure of Wyre serves as a reminder of the complexities and uncertainties within the crypto industry. Companies must navigate regulatory landscapes, market conditions, and other factors that can significantly impact their operations. As the industry continues to evolve, it remains crucial for businesses to remain agile and resilient in the face of such challenges.