After there was “uncertainty” with their custody partner, Juno asked users to leave the platform.
Fiat-to-crypto on-ramp provider of solutions Because of “uncertainty” with its crypto custodian partner Wyre, Juno has asked its users to sell their crypto or keep it on their own.
In a tweet from January 4, the platform said that it doesn’t hold any of its customers’ crypto and instead relies on a “crypto partner” to do that.
“Because we don’t know what will happen with our crypto partner, we’ve taken precautions to protect our customers,” it wrote. It also said that it is actively reaching out to customers to ask them to take self-custody.
2/ Juno, as a platform, does not store cryptographic assets; our crypto partner does.
Because we didn’t know what to expect from our crypto partner, we took steps to protect our customers.
— Juno (JunoFinanceHQ, 4 January 2023)
Wyre, a regulated money service business in the United States, is thought to be the “crypto partner” in question.
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The CEO of Wyre, Ioannis Giannaros, is said to have told employees earlier this week that the company “will need to unwind” over the next two weeks.
In an email that Axios saw, Giannaros said that the company was “still operating” but that it would be “scaling back” to figure out what to do next.
In its most recent Twitter thread, Juno said that there were still $1.25 million worth of crypto assets on the platform and that it was reaching out to customers to encourage them to self-custody their holdings.
Juno also protects its users by temporarily stopping them from buying cryptocurrencies on its platform and by turning stablecoins into U.S. dollars and putting them in their government-insured accounts, “which are FDIC Insured up to $250,000 via our partner bank.”
It also increased the amount of money people could take out of their “metal” accounts every day by five times.
Cointelegraph tried to get a comment from Juno, but did not hear back right away. Wyre did not respond to multiple requests for comment.
At the time this was written, it seemed like Juno users could withdraw money without any problems, and the platform said that its services that didn’t involve crypto were also unaffected.
Juno has said that it wants to “transition to a new crypto partner,” but it hasn’t said who that partner will be or when the change will be complete. It also said that it was working to make it possible to buy and deposit cryptocurrency “as soon as possible.”