It’s been an eventful couple of months for the cryptocurrency industry, with one bad news story after another lately. On the 4th of January, an important announcement arose from the crypto firm Juno.
In a tweet from its official Twitter account, Juno called on its users to withdraw their assets from the platform due to “uncertainty” with their custody provider, Wyre. The tweet explains that Juno has been experiencing issues with its Wyre’s custodianship and cannot guarantee the platform’s safety with the Wyre group.
“In order to safeguard our customers’ interests during this uncertain period with our crypto partner, we have taken proactive steps. We are also proactively contacting customers, encouraging them to self-custody their funds,” the crypto firm wrote.
Juno urges users with funds stored in Wyre to withdraw them as soon as possible. Coincidentally, Wyre CEO Ioannis Giannaros informed employees this week that the company would need to reduce its activities in the forthcoming weeks.
According to an email seen by Axios, Giannaros emphasized that the firm is still functioning but will be “scaling back” to prepare for upcoming plans. Juno stated in a recent tweet that they still held $1.25 million worth of crypto assets with Wyre and are actively encouraging customers to take control of their holdings through self-custody.
Juno has taken steps to protect its users, such as temporarily halting crypto purchases and trading stablecoins for FDIC-insured US dollars up to $250,000 through its banking partner. Also, it has increased the daily withdrawal limit by five-fold for its highest tier account, the “metal” account holders.
Finding A New Custodial Partner
The tweet says that Juno is working to find a new custodial partner as soon as possible. However, in the meantime, users should be prepared to move their funds elsewhere.
The company is still finding a new partner to safeguard the fund. Still, in the meantime, users need to be aware of the potential risks.
The recent problems with Wyre have been an ongoing concern for crypto users, reminding them of the importance of securing their assets. The recent move by Juno is a positive step toward the security of crypto users.
It’s a reminder that the crypto industry is still evolving. Remaining conscious of potential risks and properly safeguarding assets is essential for any crypto holder.
It’s too early to predict the outcome of this situation, but one thing is sure: any users with funds stored in Wyre should withdraw them immediately. In the meantime, Juno is working to find a suitable alternative custodian to quickly put its current situation behind it and return to business as usual.