Juno Crypto Bank has ceased operations and customers are being encouraged to liquidate or self-custody their valuables.
Since the crypto currency bank Juno is moving its holdings to a new custodian, it has requested (1) that its customers either sell or self-custody their crypto currency assets. The crypto currency platform announced the upgrade on Twitter, which also mentioned that it had boosted the daily crypto cash withdrawals for all customers by a factor of five.
"In the best interest of our users, we have also increased daily crypto withdrawal limits by 5x for all metal users."
1/ Update on @JunoFinanceHQ in the last 24 hours
— Juno (@JunoFinanceHQ) January 4, 2023
At Juno, we aim to be the easiest and fastest on and off-ramp for crypto. ~90% of our crypto native users have always used Juno as an on and off-ramp.
Juno offers these services via its banking and crypto partners.
"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." (2)
Juno made this decision after learning that the company's current custodian, Wyre, is getting ready to shut down its operations in the coming weeks. It expects to run into issues with Wyre when it reduces the scope of its business or winds down its operations, which is why it is switching custodians.
"We have temporarily disabled crypto buys on our platform and auto-converted stablecoins (USDC, USDT, mUSDC) to USD in their FDIC-insured checking account. Any fees incurred will be reimbursed." (3)
The platform mentioned in the most recent thread it posted on Twitter that it still has $ 1.25 million worth of crypto currency on its platform. In addition, it was reaching out to clients to encourage them to keep their holdings in their custody.
"Since we communicated this to our users, crypto assets held on the platform are now below $1.25m. We are actively reaching out to customers and asking them to self-custody." (4)
Juno has implemented additional safety measures for its users, such as temporarily disabling the purchase of crypto currencies on its platform and converting users' stablecoins into US dollars, which are then deposited into their government-insured accounts. These accounts are FDIC-insured for up to $250,000 via Juno's partner bank.
The Care of Juno Will Be Transferred From Wyre to a New Guardian
The crew of Juno has already begun collaborating with a new custodian who remains anonymous. In the following weeks, Wyre's customer funds will be moved to the new custodian, who will take up those responsibilities.
The value of Wyre, which used to be $1.5 billion, has taken a big hit in recent months due to several adverse factors. In September, the one-click checkout startup Bolt decided not to go through with the acquisition transaction it had made with the other business.
As we reported, Wyre allegedly informed its staff in December that the company would be liquidating and discontinuing its offerings beginning in January.
Juno has announced that it plans to switch to a new crypto partner, but the company has not disclosed who that partner will be or when the switch will be finished. Additionally, it has indicated that it is actively working to resume crypto currency transactions and deposits as quickly as possible.
