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Digital currency payments firm Wyre to shut down its operations amid crypto winter

Popular virtual currency payment processing firm Wyre has announced its intention to shut down its operations within the next 30 days, reports Axios.

Axios disclosed that two unnamed employees confirmed the matter to the news outlet, saying they received emails from the company’s CEO Ioannis Giannaros. The CEO confirmed that Wyre would be ending operations before the end of January following a difficult 2022.

“We’ll continue to do everything we can, but I want everyone to brace themselves for the fact that we will need to unwind the business over the next couple of weeks,” Giannaros’ email read.

The email failed to disclose whether or not present employees will receive a severance package for the sudden termination of their contracts, but there are swirling speculations that the company’s dire financial situation reduces the chances of severance payments.

“Wyre won’t continue as a profitable business,” Wyre’s former technical engineer said after his layoff on LinkedIn.

Wyre rose to popularity in 2021 at the peak of the bull market, attracting the attention of investors. A potential $1.5 billion acquisition with Bolt fell through following significant valuation cuts due to grim macroeconomic conditions.

“We will continue our existing commercial partnership with Wyre to pave the path of crypto integration into our ecosystem, bringing Wyre’s innovative crypto infrastructure to the world,” Bolt’s CEO Maju Kuruvilla said.

It is widely believed that the botched acquisition by Bolt, the extended bear market, and FTX’s implosion may have affected Wyre’s finances. Axios reports that Wyre confirmed that despite winding up plans, the company would operate as usual but “will be scaling back” to plot the next steps.

The list of digital asset firms winding down operations grows

2022 was undoubtedly one of the darkest years for the history books in the virtual currency ecosystem. Marred by implosions and spillovers, a handful of firms were forced to shut down their operations or file for bankruptcy.

FTX, BlockFi, Three Arrows Capital (3AC), Voyager Digital, and Celsius Network are some of the largest firms forced to shut their operations in the wake of a tumultuous year. Other exchanges caught in the eye of the storm include Zipmex, Hodlnaut, and Vauld, while other companies had to reduce their staff strength to stay afloat.

Pundits have suggested that the full effects of FTX’s collapse will not be felt until 2023, urging industry players to brace for more firms biting the dust.

Watch: The Future of Digital Asset Exchanges & Investment

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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