Wyre Imposes 90% Withdrawal Limit on Customers

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• Wyre imposed a 90% withdrawal limit over the weekend
• The crypto payments platform announced the move in a no-reply tweet thread
• The firm added that it is “exploring strategic options” to keep it solvent

Crypto payments platform Wyre imposed a 90% withdrawal limit on its customers over the weekend, hoisting a red flag that indicates it could be the next domino to fall. Wyre announced the move on Saturday, saying that it was “modifying” its withdrawal policy to disallow customers to take all their money off it, leaving 10% of their funds trapped on the platform. In the same tweet thread, the company said that it was “exploring strategic options” that would help it survive the bear market, leading to many suspecting it would be the next crypto company to fold.

10% Trapped on Platform

Wyre made the announcement in a tweet thread that didn’t invite replies, clearly anticipating the flurry of negativity that was to follow:

Hey Wyre community, we want to provide you with an update regarding the current state of Wyre.

— Wyre 🔊 (@sendwyre) January 7, 2023

The tweet thread didn’t start positively, saying that “the current state of Wyre” was about to be addressed, before jumping in with both feet and announcing that it was “limiting withdrawals to no more than 90% of the funds currently in each customer account”, essentially preventing them from accessing 10% of their own money.

Wyre Needs Money, Basically

The company continued by saying that this move was “in the best interest of our community”, and added that it was also “exploring strategic options” that would enable it to “navigate the current market environment and deliver on our mission to simplify and revolutionize the global payments ecosystem.” In other words, it’s running out of money and needs to find a benefactor.

Wyre would be the latest crypto contagion domino to fall, a series that has already seen the likes of Voyager Digital and Celsius go down, and may well take the Digital Currency Group with it. Naturally, customers will be withdrawing their 90% immediately if they have any sense about them, which would presumably leave Wyre with just enough of its customers’ money to function, suggesting it may use it for such a purpose.