Crypto firm Juno advised its customers to self-custody or sell their crypto assets due to uncertainty with its crypto partner in a Jan. 4 Twitter thread.
The crypto firm advised this because it does not take personal custody of its users’ assets but relies on its crypto partner. While it did not reveal the identity of this partner, many within the community have speculated that it is Wyre.
Earlier in the week, Wyre CEO Ioannis Giannaros reportedly told employees that the crypto payments firm would shut its operations. According to the report, Giannaros said that while the crypto company might continue operating, it would have to scale back its operations.
Meanwhile, Juno said it has disabled its crypto-buying feature and has automatically converted stablecoins in its users’ wallets to USD. The USD can be found in their FDIC-insured accounts, and the firm would reimburse any fees due to such conversion.
However, users must decide what to do with their other crypto holdings. Juno wrote:
“We strongly recommend withdrawing crypto assets to your self-custody wallet or selling your crypto for cash in your Juno checking account, which is FDIC Insured up to $250,000 via our partner bank.”
Juno added that it had increased its crypto withdrawal limits for metal users so they could easily withdraw their assets.
Since the announcement, Juno said the crypto assets held on its platform dropped below $1.25 million.