Wyre

SpankPay crypto payment service shutters, citing ‘hostile banking environment’

SpankChain was forced to close its crypto payment processor after the hunt for a new adult-industry-friendly service provider yielded no results.

Ethereum-based adult entertainment platform SpankChain is shuttering its crypto payment processor, SpankPay, after losing its payment service provider Wyre in February and failing to find a new one. 

In February, SpankPay revealed that its previous provider — crypto payment platform Wyre — had terminated its agreement to provide payment services to SpankPay, referring to “violations of any third-party payment processor or network rules.“

In a March 20 post, SpankPay said this was a “targeted shutdown” by Wyre because its new payment processor “doesn’t work with the adult business.”

“This came as a shock, seeing as our relationship with Wyre had been supportive and respectful up until this point,” it wrote.

SpankPay says since then, all attempts to find another service provided resulted in rejection due to it “being in the adult industry.“

“Operating SpankPay in a hostile banking environment has always been challenging, but the escalating attacks have become untenable for our small team and the niche market we serve,“ SpankPay wrote in a Twitter thread.

SpankChain is an Ethereum-based blockchain aimed at helping adult content creators cut out third-party intermediaries such as traditional banks — which have had a long history of conflict with the adult industry.

SpankChain launched SpankPay in July 2019. The adult-industry-friendly payment solution assisted adult entertainers and merchants in accepting cryptocurrency for their services.

Related: Blockchain technology can help create safe and inclusive adult platforms

Despite the shutdown, the company assured users, “your money is safe and we’ll get it to you as soon as possible.“

“We encourage users to create crypto wallets and explore personal financial sovereignty. We’ll continue to develop and invest in products that advance the adult industry,” it added.

Crypto payments platform Wyre lifts 90% withdrawal cap

Just five days after imposing them, Wyre has removed all limits on account withdrawals.

Crypto payment platform Wyre has lifted the 90% withdrawal limit it placed on users earlier this week after securing additional funding. 

On Jan. 13, the San Francisco-based fintech firm announced that it had received financing from a “strategic partner” that allows it to continue the normal course of operations, including re-accepting deposits again.

“As a regulated financial institution, we’re proud that we were able to continue delivering our services in a safe and sound manner without pausing withdrawals,” it added.

Wyre set withdrawal limits on Jan. 8, restricting customers from emptying their accounts entirely.

The limits were imposed just two days after former employees hinted at the possibility of the firm’s shutdown. Explaining the withdrawal cap then, Wyre said it was in “the best interest of our community,” without divulging further.

However, as of the latest update, Wyre says it has now removed that cap and full withdrawals and deposits are permitted again after receiving “additional capital” from an unnamed “strategic partner.”

“We will resume accepting deposits and lift the 90% withdrawal limit effective immediately.”

“This additional capital will help us continue to deliver on our mission to simplify and revolutionize the global financial ecosystem,” it added.

Cast your vote now!

Wyre provides real-time payouts, same-day transfers, direct-to-bank transfers, and cross-border payments in fiat and crypto. The company was acquired by fintech firm Bolt for $1.5 billion in April.

Related: Cryptocurrency is headed toward surviving its first age

The company, founded in 2013, has been feeling the squeeze like many others in the crypto bear market. It laid off 75 employees earlier this month, according to reports.

Furthermore, concerns have been raised over insolvency as reports circulated regarding a potential shutdown in early January. However, the company has denied them and today’s announcement suggests that its current situation has improved.

Popular crypto wallet MetaMask severed ties with Wyre on Jan. 5 when it announced the removal of the platform from its mobile aggregator and browser extension.

Wyre imposes up to a 90% withdrawal limit for all users

Wyre has imposed a daily withdrawal limit on its platform, citing “the best interest of our community.”

Crypto payment platform Wyre modified its withdrawal policy to limit users from cashing out up to 90% of their assets, just days after two former employees allegedly hinted at the possibility of a shutdown.

On Jan. 7, Wyre imposed a withdrawal limit on its platform, citing “the best interest of our community.” Following the policy modification, Wyre users can withdraw up to 90% of their crypto funds as the company explores strategic options to circumvent the prolonged bear market.

In addition, the company appointed Yanni Giannaros, Wyre’s chief risk officer and compliance officer, as itsinterim CEO. Wyre users will be subject to changes in daily withdrawal limits as the platform entails new operational strategies.

Related: Bitcoin exchange withdrawals sink to 7-month low as users forget FTX

Reports suggest that Wyre’s issues have also resulted in a breakup of its partnership with crypto wallet MetaMask.

On Jan. 5, MetaMask announced the removal of Wyre from its mobile aggregator, which allows users to buy cryptocurrencies directly from the digital wallet.

“We’re currently working on extension removal and appreciate your patience,” MetaMask said, asking users not to use Wyre on the mobile aggregator.

MetaMask removes Wyre from aggregators amid shutdown reports

Wyre was set to be acquired for $1.5 billion by San Francisco e-commerce startup Bolt last year, but the deal was eventually scrapped.

Crypto wallet MetaMask is ending support for services of Wyre crypto payment platform amid reports of Wyre planning to shut down operations soon.

MetaMask took to Twitter on Jan. 5 to announce that it has removed Wyre from its mobile aggregator, which allows users to buy crypto directly through its digital wallet.

“We’re currently working on extension removal and appreciate your patience,” MetaMask said, asking users not to use Wyre on the mobile aggregator.

According to the announcement, MetaMask still supports a wide number of other payment gateways, including Transak, MoonPay and Sardine. The services are available on Apple Pay, bank cards and transfers, MetaMask noted.

The news comes soon after Wyre CEO Ioannis Giannaros reportedly announced to employees that the firm is going to soon shutdown operations.

“We’ll continue to do everything we can, but I want everyone to brace themselves for the fact that we will need to unwind the business over the next couple of weeks,” Giannaros reportedly stated.

Related: 2023 could be a rocky year for crypto venture investments: Galaxy Research

MetaMask did not immediately respond to Cointelegraph’s request to comment. Wyre did not respond to several press inquiries from Cointelegraph.

Founded in 2013 in San Francisco, Wyre is a major crypto payment firm that came close to being acquired for $1.5 billion last year. In April 2022, the United States e-commerce startup Bolt agreed to acquire Wyre. Amid the massive crypto bear market of 2022, Bolt eventually opted to scrap the deal in September.

Crypto firm Juno urges users to withdraw after ‘uncertainty’ with custody partner

Juno recommended users pull their funds from the platform amid “uncertainty” over the fate of its crypto custody provider Wyre.

Fiat-to-crypto on-ramp solution provider Juno has urged its users to sell or self-custody the crypto on its platform citing “uncertainty” with its crypto custodian partner Wyre.

In a Jan. 4 tweet, the platform explained it that it doesn’t hold any of its customer’s crypto, and relies on its “crypto partner” for those services.

“Due to uncertainty with our crypto partner, we have taken preemptive action in the interest of our customers,” it wrote, adding it’s also actively reaching out to customers to ask them to self-custody.

The “crypto partner” in question is understood to be Wyre, a regulated Money Service Business in the United States.

Earlier this week, Wyre CEO Ioannis Giannaros reportedly told employees that the firm “will need to unwind […] over the next couple of weeks.”

In the email seen by Axios, Giannaros said the firm was “still operating” but would be “scaling back to plan our next steps.”

Juno in its latest Twitter thread said there was still $1.25 million worth of crypto assets held on the platform and it has been reaching out to customers to encourage them to self-custody their holdings

Other safeguards employed by Juno for users include temporarily disabling crypto buying on its platform and converting stablecoins to U.S. dollars into users’ government-insured accounts “which are FDIC Insured up to $250,000 via our partner bank.”

It also increased daily withdrawal limits five-fold for all “metal” account holders, its highest tier account.

Cointelegraph contacted Juno for comment but did not receive an immediate response. Wyre did not respond to multiple requests for comment.

Related: US federal agencies release joint statement on crypto asset risks and safe practices

At the time of writing, Juno users were seemingly able to withdraw funds without issue and the platform claimed its services unrelated to crypto were similarly unaffected.

Juno said it plans to “transition to a new crypto partner” but is yet to release information on what partner and when the transition will be finalized. It added it was working to restart crypto buying and deposits “as soon as possible.”

Crypto firm Juno urges users to withdraw after ‘uncertainty’ with custody partner

Juno recommended users pull their funds from the platform amid “uncertainty” over the fate of its crypto custody provider Wyre.

Fiat-to-crypto on-ramp solution provider Juno has urged its users to sell or self-custody the crypto on its platform citing “uncertainty” with its crypto custodian partner Wyre.

In a Jan. 4 tweet, the platform explained it that it doesn’t hold any of its customer’s crypto, and relies on its “crypto partner” for those services.

“Due to uncertainty with our crypto partner, we have taken preemptive action in the interest of our customers,” it wrote, adding it’s also actively reaching out to customers to ask them to self-custody.

The “crypto partner” in question is understood to be Wyre, a regulated money service business in the United States.

Earlier this week, Wyre CEO Ioannis Giannaros reportedly told employees that the firm “will need to unwind […] over the next couple of weeks.”

In the email seen by Axios, Giannaros said the firm was “still operating” but would be “scaling back to plan our next steps.”

Juno said in its latest Twitter thread ththere was still $1.25 million worth of crypto assets held on the platform and it has been reaching out to customers to encourage them to self-custody their holdings

Other safeguards employed by Juno for users include temporarily disabling crypto buying on its platform and converting stablecoins to U.S. dollars in users’ government-insured accounts “which are FDIC Insured up to $250,000 via our partner bank.”

It also increased daily withdrawal limits five-fold for all “metal” account holders, its highest tier account.

Cointelegraph contacted Juno for comment but did not receive an immediate response. Wyre did not respond to multiple requests for comment.

Related: US federal agencies release joint statement on crypto asset risks and safe practices

At the time of writing, Juno users were seemingly able to withdraw funds without issue and the platform claimed its services unrelated to crypto were similarly unaffected.

Juno said it plans to “transition to a new crypto partner” but has yet to release information on what partner and when the transition will be finalized. It added it was working to restart crypto buying and deposits “as soon as possible.”