On January 4th, the crypto bank Juno tweeted that customers should either remove their crypto assets to a self-custody wallet or sell them for funds in a Juno checking account that is FDIC insured up to $250,000 through a partner bank.
As stated in a Twitter thread, Juno has chosen to rely on a third-party company to handle customers’ cryptocurrency assets rather than managing them directly. However, due to recent uncertain circumstances involving this partner, Juno has taken proactive measures to safeguard the interests of its customers.
Juno CEO and co-founder Varun Deshpande said that the decision to advise customers to self-custody or sell their assets was made as the company’s current custodian, Wyre, plans to shut down its operations in the near future.
The company indicated that it is actively working to resume crypto purchases and deposits as soon as possible and plans to switch to a new crypto partner. They reassured customers that they would continue to operate, fulfill orders as usual, and remain committed to the crypto market.
As a precautionary measure, the company has temporarily disabled the ability to purchase cryptocurrency on its platform. It has automatically converted stablecoins (mentioned in the tweet) to US dollars in an FDIC-insured checking account. Additionally, customers will not be charged for any fees incurred due to this action, the company said.
The company ensures security for additional services:
All Banking and card-related services are unaffected and continue to operate as usual. Juno has always taken a community-first approach, and this was a preemptive action taken directly in the interest of users.
The company also stated that since announcing this change to its users, the value of crypto assets held on the platform has dropped below $1.25 million. The company is currently contacting customers and encouraging them to take control of their asset management (self-custody).
Crypto Payments Company Wyre to Shut Down
Yesterday, Tronweekly reported that Juno’s custodial partner, Wyre, a cryptocurrency payments company, has informed its employees that it will be shutting down. Axios first disclosed this news.
According to reports, the CEO, Ioannis Giannaros, notified certain employees of the company’s closure through email during the holiday season and mentioned that the company would be liquidated.
Whereas, Giannaros stated in an email to Axios that Wyre is still functioning but will be scaling back its operations as it maps out its future plans. He has not yet responded to requests for additional comment on the allegations made by ex-employees.
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